A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Initial Report

Ordering party: Warsaw City Office Contractor: EcorysPolska Sp. z o.o. Warsaw, 30 November 2012

Raport poczÄ&#x2026;tkowy: Badanie sektora kreatywnego na potrzeby projektu European Creative Cluster Lab (ECCL)

The report was drawn up by a team composed of

Maria Aluchna, PhD, Associate Professor, Warsaw School of Economics Paulina Fabrowska RafaĹ&#x201A; Kasprzak, PhD Monika Skrobol

Editing Paulina Fabrowska

Proofreading Dorota Tomczak

Technical consultation Marta Mackiewicz, PhD

Co-funded by the European Commission

This publication is supported by the European Commission's Directorate-General for Enterprise and Industry and financed under the Competitiveness and Innovation Framework Programme (CIP) which aims to encourage the competitiveness of European enterprises.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Table of contents 1.

Introduction................................................................................................................................................4

The scientific context .................................................................................................................................5

2.1.

Creative entrepreneurship and cooperation, i.e. how to transfer ideas onto the market ..............9

2.2.

Innovation in the creative sector â&#x20AC;&#x201C; inter-sector contacts ................................................................16

2.3.

Incubation (start-up) - a supply chain ...............................................................................................21

The results of local research....................................................................................................................24

3.1.

The creative sector in Warsaw ...........................................................................................................24

3.2.

Suggesting support tools for the creative sector in Warsaw ...........................................................31

The results of European and global research.........................................................................................41

4.1.

Identified instruments for the support of creative industries .........................................................41

4.2.

A summary of the identified instruments - typology........................................................................66

4.3.

Case studies .........................................................................................................................................70

The roadmap ............................................................................................................................................83

Conclusions and recommendations........................................................................................................86

References ................................................................................................................................................98

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

1. Introduction This report was created within the framework of the European Creative Cluster Lab project jointly being implemented by its partners – MFG Baden-Württemberg (a film cluster in Stuttgart), the City of Lille, Barcelona Media (a foundation dedicated to research in the fields of media and modern technologies), the Puglia region, and the City of Warsaw. The objective of the ECCL project is to improve the competiveness of the European creative sector by means of networking, the exchange of experiences, research, and the creation of pilot projects utilising the knowledge acquired through exchange and research. This report summarises the results of studies conducted for the purposes of these project’s activities in which the City of Warsaw is engaged. Research conclusions will constitute a starting point for the proposed pilot actions, which can be taken up by the Local Government in order to bolster and stimulate the growth of the creative sector in Warsaw. The conducted analyses were arranged in three thematic issues, corresponding to different developmental processes in enterprises: • creative entrepreneurship and cooperation (how to transfer ideas onto the market), • innovation (inter-sector contacts), • cooperation in the framework of a supply chain. The first part of the study presents the results of a scientific literature survey indicating the most important issues, problems, and characteristic factors of each discussed process. Another chapter summarises the results of a study conducted at the local level, encompassing creative enterprises in Warsaw. The specific factors and determinants of developmental processes, and also areas requiring external support, are presented in the form of mini-studies, and illustrated with examples of specific business ventures. The next part of the report focusses on the results of a study conducted at the global level, devoted to the identification of examples of good practices in the field of supporting the creative sector at various stages of its development. The mini-studies presented there are devoted to examples of specific initiatives implemented worldwide, which comprise an answer to the most important problems and hindrances to the development of creative industries.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

In the final part of the report, we roadmap the existing incubation, innovation, and clustering system in the environment of the creative cluster. There are also summarised the most important conclusions and recommendations stemming from the conducted research. The team of authors would like to express their thanks to all who took part in the research and helped in acquiring information, the analysis of which became an invaluable element in the presented report.

2. The scientific context

The creative sector1 is represented by enterprises operating in various industries, which are characterised by creating new material2. According to the definition proposed by the British Department of Culture, Media and Sport, the creative sectors are those “which have their origin in individual creativity, skill and talent, and which have the potential for wealth and job creation through the generation and exploitation of intellectual property”3. The cultural and creative sectors’ analysts have proposed several systems for the classification of creative industries; however, one of the most popular and clear is the model in which groups of entities making up a cultural and creative sector are organised in the form of concentric circles, in the centre of which there are generated creative ideas and material (texts), whereas, as we move outwards, the material is supplanted with additional elements, transforming it into more and more complex products. The model core comprises culture and art in their classical sense (e.g. music, dance, literature, and visual arts), whereas subsequent strata encompassing the core include the industries based on this material.

1 Though in Polish reference books, the terms "creative sector" and “creative industry” are being used interchangeably, foreign researchers point out that creative companies do not meet the requirements to justify the use of the term “industry”, as industrial enterprises are organised around a value chain. The creative sector, on the other hand, focusses on innovative ideas and novel material, the creation of which does not stem from transition through selected stages of the value chain – O’Connor J. (2009). Creative industries: a new direction? International Journal of Cultural Policy, vol., 15, No. 4, pp. 387-402. 2 The UN Educational, Scientific and Cultural Organization. Understanding creative industries, http://portal.unesco.org/culture/en/files/30297/11942616973cultural_stat_EN.pdf/cultural_stat_EN.pdf

DCMS enumerates 11 creative sectors: advertising, architecture, the art and antiques market, crafts, design, designer fashion, ﬁlm, interactive leisure software, music, the performing arts, publishing, software, television and radio. http://www.culture.gov.uk/what_we_do/creative_industries/default.aspx Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Diagram 1. The concentric circles of the culture and creative sectors

Source: Szultka, S. Klastry w sektorach kreatywnych. Motory rozwoju miast i regionów. Warsaw, PARP 2012 [as cited in] KEA, The Economy of Culture in Europe, 2006.

The stratum which directly encloses the core comprises cultural products (and services) that are the closest to the material generated within the core, including books, radio, and films. The further we go from the core, the more processed the material is – another stratum thus encompasses industries that are not so easily-qualified as cultural, but use material generated by it, these are, among others, advertising and industrial design. In line with the suggested model, the creative sector consists of subsidised entities (cultural institutions), and also commercial organisations; however, the former are located mainly in the material-generating core, and the other – in the surrounding strata4. The specificity of the creative sector5 is its strong internal diversification, as, within the framework of this sector, we can identify: •

various industries – in the light of various definitions, the creative sector encompasses many diverse industries (see Diagram 1),

•

various organisational forms of running a business including, for example, individual artists, entities functioning under the Act on Cultural Activities, enterprises, third-sector organisations, and social-economy entities,

Marcus. C. Future of creative industries. Implications for research policy. DG Research 2005 [as cited in] Throsby, David. Economics and Culture. Cambridge University Press 2001 5

UN Educational, Scientific and Cultural Organization. Understanding creative industries, http://portal.unesco.org/culture/en/files/30297/11942616973cultural_stat_EN.pdf/cultural_stat_EN.pdf Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

entities of different sizes – while in industries like advertising or architecture, there are small and large enterprises, when it comes to artistic education or photography the businesses are run mainly on the micro-scale,

•

different ranges of operations – some part of the creative sector offers the mass distribution of products (e.g. films, radio and TV broadcasts, publications), while other entities offer unique products (handicrafts) or products consumed one-off in a given time and location (e.g. artistic events)6,

•

various

business

models

including

for-profit

organisations,

non-profit

organisations, companies funded using designated or earmarked subsidies, and companies subsidised from the purchase of products. Not only has the creative sector been growing in importance with regard to value creation, but it has also perfectly blended in the changes which are taking place nowadays in the economy. The processes of globalisation and internationalisation, as well as the dynamics of consumers’ tastes and expectations, influence the directions of entrepreneurial development. Companies are more frequently forced to quickly adapt to changing requirements and seek new sources of advantage, e.g. by using intangible assets and new business models, entering into new areas of activity,

and

willingness contemporary

expressing to

greater

cooperate. directions

The of

entrepreneurial development highlight the growing importance of and share in generating such assets as knowledge, information, reputation, social capital, and relationship capital. Such needs are to a great extent satisfied by the enterprises in the creative sector.

It is currently estimated that the share of the creative sector in GDP runs at different levels in various countries. The highest values - ca 7-9% - have been observed in the United States, ca. 5% of GDP in the United Kingdom, and 3-5% in China1. In USA, the creative sector generates 22 billion dollars, which is growing at the rate of 5% a year. At the same time, the estimated growth of the creative sector is running at the incredible level of 14% in the USA and 12% in the UK1. In Poland, the share of the creative industry in the economy has also become substantial. The only available data – from 2002 – came from the National Strategy for the Development of Culture for 2004-2013 and estimate that the share of the cultural sector and its industries is running at 4.5% of GDP.

Recently, the creative sector has had to face, among other things, the changes connected with the development of digital technologies, which has determined to a large extent the activities of such industries as television, phonography, photography and video distribution. New technologies bring about

Analiza potrzeb i rozwoju przemysłów kreatywnych. Ministerstwo Gospodarki 2009 Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

not only benefits through new channels to reach customers (VOD, the Internet), but also new threats, e.g. connected with the need to reinterpret copyrights and implement new tools for its protection (as in the case of the phonographic industry). Other effects of digitisation can be observed in the photographic industry – with the mass launch of digital cameras, the share of people dabbling in photography also increased. As a result the prestige of this profession is on the wane, as is the number of photo labs and their clients7. On the other hand, digital technologies often constitute an important element of innovation – including the publishing industry (audio books and e-books). Undoubtedly, the ability to quickly respond and adapt to ongoing changes is a characteristic of the creative sector. Another important feature of the creative sector is its relatively strong ability to establish cooperation. First of all, a substantial proportion of people operating in the creative industries base their operation on the “freelancer” model, and engage in numerous ventures or projects in cooperation with different partners (companies or other authors). Secondly, the model of small creative groups is also growing in popularity. It entails several people using the same space, under the same brand, but without a formally-established economic entity. Thirdly, we can observe that more or less formalised partnerships are being formed between companies in the creative sector, often for the purposes of one project or venture only (the implementation of a specific promotional campaign, the production of an album or a film, or the staging of a performance). Many such ventures require just the joint efforts and skills of a few authors and entrepreneurs. It is important to remember that such cooperation can also include partners representing industries other than creative. This cooperation, if it is maintained for a longer period of time, can become the specific start of a cluster. However, with changing needs, the relationships within the sector can also change. In this chapter, we present the results of a scientific literature survey including the aforementioned characteristics of the creative sector, and indicating the most important conditions of three important developmental processes in the creative sector:

•

creative entrepreneurship and cooperation (how to transfer ideas onto the market),

•

innovations (inter-sector contacts),

•

cooperation within the framework of the supply chain.

Grochowski, M. Sektor kreatywny w Warszawie. Potencjał i warunki rozwoju. Warszawa 2010 Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

2.1. Creative entrepreneurship and cooperation, i.e. how to transfer ideas onto the market The effective functioning of companies in the creative sector requires the meeting of two important conditions. Firstly, the representative of the creative sector should demonstrate entrepreneurial attitude and at least basic knowledge in the field of running a company (making a business plan, stating the business model, managing human resources, and accounting). Secondly, their success requires cooperation not only at the internal level, but also with representatives of other, traditional industries8. It is worth noting, that creative sector companies – due to their high specialisation, package unification, and, usually, small size9 – are much more inclined to build networks, within the framework of which operate both companies and their individual employees10. Entrepreneurship Entrepreneurial attitude is defined as a set of features and activities, owing to which an individual can understand the needs of their clients and the processes taking place on the market and respond to them accordingly, displaying one’s

Uncertain demand High risk and uncertainty of demand for the marketed products and services is a creative-sector-specific issue. Each subsequent product is a form of new quality, and is characterised by unique features, in respect of which it is impossible to precisely forecast if it will arouse the consumers’ interest. The creator can never be certain whether the film, music, or a piece of furniture offered by him or her will appeal to its consumer (recipient). The goods supplied by the creative sector are to a great extent “experimental goods,” where the consumer’s satisfaction is based on subjective sensations and the non-materialistic values ascribed to the product. Furthermore, the life cycle of creative products is very short, which forces constant innovation. Virtually every product offered by the cultural and entertainment industries is a single, unique package which is going to be replaced by a new one in next to no time.

range of products or services11. The entrepreneurial attitude in the creative sector companies therefore means the ability to react to the emerging threats and opportunities, and the ability to take advantage of them. Creative sector entrepreneurship, therefore, means: •

the ability to utilise knowledge and social capital as important assets,

Boon B., Jones D., Curnow B. (2009). Out of the blue: The dark side of creative enterprise, Culture and Organisation, vol. 15, Nos. 3-4, pp. 361-377. 9 Cf. Ecorys (2009). Analiza potrzeb i rozwoju przemysłów kreatywnych, http://www.mg.gov.pl/files/upload/10147/Analiza%20potrzeb%20i%20rozwoju%20przemyslow%20kreatywnych.p df 10 Huang Y.-H. (2011). An explanatory study of the competitive strategy of cultural and creative industries in Taiwan, European Journal of Social Sciences, vol., 20, No. 3, p. 391-400. 11 Moczydłowska J. Pacewicz I. (2007). Przedsiębiorczość, Wydawnictwo Fosze. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

the ability to introduce innovations and novel solutions, and exploiting the advantages offered by copyright12,

•

the ability to intertwine cultural values13 with economic challenges (costs and profits),

•

the ability to take rational risks and to coordinate one’s efforts,

•

the ability to manage unusual, specific, and not fully-defined products/services in respect of key economic indices (e.g. productivity and profitability),

•

the ability to develop effective organisations in the specific conditions of the creative sector (individual products, individual clients with aesthetic expectations that are difficult to define, a flat organisational structure) and its employees (extensive individuality and corresponding difficulties with its team-work and creative processes),

•

the ability to manage personnel, including employees characterised by a great need for independence and autonomy, often scattered geographically,

•

the ability to establish contacts in the industry, and also suprasectoral contacts, in order to find clients, employees, sub-contractors, updating the latest trends and facilitating promotion (exhibitions, meetings) and distribution.

Cooperation

Prince R. (2010). Globalizing the creative industries concept: Travelling Policy and transnational policy communities, The Journal of Arts Management, Law and Society, vol. 40, pp. 119-139.

Cultural and creative material is to a great extent generated in the creative core, see Diagram 1. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

The entrepreneurial attitude of the employees in the creative sector also means the ability to establish valuable business relations and develop cooperation networks. Cooperation that is based on partnership bolsters the efficacy of operations and the market power of the grouped companies. At times, it is a necessary condition for the implementation of a more complex venture, which requires the joint efforts of several entities. Such cooperation relates to both the cooperation within the creative sector and cooperation between companies in the creative and traditional sectors. Aside from the obvious Spin-off A spin-off company is a new enterprise which is established due to the employees of a parent company or other organisation becoming independent. The creation of a spin-off company is accompanied by the utilisation of knowledge, ideas, technical solutions, etc. which were previously generated in the framework of the parent company.

profit, which is the expansion of activities, facilitating business cooperation also leads to deriving other benefits, such as the exchange of information (e.g. regarding the provisions of the law), experience (e.g. through cooperation with an accountant), and using the infrastructure (e.g. the client base, distribution channels). Cooperation

between traditional and creative companies is usually part of a diversification strategy for the â&#x20AC;&#x153;traditionalâ&#x20AC;? partner, which, in contact with the creative industry, sees an opportunity for the development of innovative products and services. In the long run this can translate into the establishment of a new, joint entity (spin-off) or the combining of the already-existing companies (merger)14. Incentives and barriers to cooperation between the creative and traditional sectors are presented in Table 1.

Park H., Steensma H. (2012). When does corporate capital add value for new venturesâ&#x20AC;?, Strategic Management Journal, vol. 33 No. 1, pp. 1-22.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Table1. Incentives and barriers to cooperation between the creative- and traditional-sector companies

Incentives and other factors facilitating

Barriers and other factors hampering cooperation

cooperation The perspective of gaining a favourable position

Institutional issues, difficulties in access to capital

on the market, being the first on the market (first-mover advantage) New social attitudes, increased activity, new

Low level of trust between partners (the lack of

communication technologies

social capital)

Being unique on the market, high margin,

No faith in the economic sense, a high risk of

difficulties in copying, patents and copyrights

failure.

protecting the product/service The ability to exchange experiences, know-how

Difficulties in communication, different

access, the effects of synergy

organisational cultures, no understanding, ineffective leadership

Supporting traditional businesses based on new,

Concerns for the commercialisation of culture and

innovative, and creative endeavours, the

transition from cultural values to a mass product.

diversification of the base business A lower share of labour costs, which hamper the

The early stage of economic development and

ability to compete in traditional industries in

society gaining wealth (low demand for goods on

developed economies

offer)

Elements of State policy preventing social

No stimuli and an inadequate State policy in

exclusion

respect of the above

Source: own work.

As presented in Table 1, there are some barriers to cooperation, including institutional obstacles, lack of faith in the economic sense of such cooperation, difficulties in communication connected with different organisational cultures, and mutual lack of understanding. Public authorities (at the local and national level) should therefore create such conditions that could facilitate entrepreneurship and encourage companies to establish cooperation, and, at the same time, remove the identified barriers. A survey of literature suggests a growth in State activity and an increase in the importance of the creative sector in many countries:

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

The United States of America

– the country’s policy is here focussed on

facilitating strong copyrights and the conditions for the development of the entertainment and film industries, as well as on the creation of creative clusters, •

Canada16 provides support for the creative sector by means of the appropriate tax policy; we can also observe a growth in the awareness of education’s impact on the development of the creative sector,

•

In Australia17 an active State policy maintained up to the 1980s as part of national identity contributed to the development of the sector and to an increase in its importance in generating GDP,

•

New Zealand supports the development of the creative sector which is, to a large extent, focussed on the film industry,

•

China19 is creating the conditions for the development of the creative sector, at both the national and local level, despite this sector still being at an early stage in its development,

•

United Kingdom

since the 1980s has maintained an active policy on the

development of the creative sector and creating conditions for cooperation with traditional companies. Many initiatives and massive events at the national and global level have stemmed out from this initiative, •

Germany

maintains an interesting development policy for the creative sector,

which is regarded as a historical chance for the country’s promotion, facilitating cultural diversity, and as a way to develop human capital, •

Taiwan22 maintains a creative-sector development policy as an integral part of the competiveness strategy on the global market and in terms of human resources,

Flew T., Cunningham S. (2010) – op. cit. Léger M. (2010). The non-productive role of the artist. The creative industries in Canada, Third Text, vol. 24, issue 5, pp. 557-570. 17 Flew T., Cunningham S. (2010) – op. cit. 18 Prince R. (2010) – op. cit. 19 Zhang H., Wang J., Liu D. (2011) – op. cit. 20 Banks M., Hesmondhalgh D. (2009). Looking for work in creative industries policy, International Journal of Cultural Policy, vol. 15, No. 4, pp. 415-430. 21 Zhang H., Wang J., Liu D. (2011). – op. cit. 22 Huang (2011). – op. cit. 16

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

creating opportunities for companies’ development (infrastructure, funding, and the promotion of effective business models), •

Lithuania23 supports the development of the creative sector, which is treated as an integral part of the cities’ development policy,

•

Switzerland, Hong Kong, Columbia, Brazil, and the Republic of South Africa maintain creative-sector development policies as a part of preserving their national heritage24.

In reference books, significant importance is being attached to the studies of Richard Florida, who highlights the special role of urban areas and metropolises.

From the

sector’s point of view, they comprise key clusters of the so-called creative class25 (artists, graphic artists, actors, singers, writers, etc.).

Geographical

proximity,

access

infrastructure, and the ability to establish contacts and develop clusters all play a significant role in stimulating the development of creative districts and the creative sector in large cities. As data show, employment in the creative sector is estimated to run at the level of 12% in New York, 14% in London, and 15% Tokyo26.

The educational system and the development of the creative sector One of the characteristics of the cultural and creative sectors is their need for well-educated personnel, and also for continual professional development. The Governments of countries like the United Kingdom and Singapore have long recognised the role of artistic education at all levels – from basic to higher education. First of all, it is important to ensure the suitable quality of the education of the artists themselves. Business skills, enabling artists to commercialise their ideas, should supplant their artistic qualifications. The curricula at art universities often blank out the learning of practical skills, including organisational, negotiation, and labour-market movement skills. These competences are invaluable from the point of view of developing creative entrepreneurship. On the other hand, there also appears to be a need for general art education as the basis for creating demand for the creative-sector services. A conscious, demanding, and aesthetically-established consumer will demonstrate a higher interest in the goods offered by creative enterprises. The modelling of consumers’ tastes and high requirements can also take place by the offering of highquality material by cultural institutions in the public sector.

R. Florida suggests that a specific policy at the city level can significantly contribute to an increase in its creative potential. Such a potential is 27

also demonstrated by Warsaw .

Černevičiŭtě J. (2011). Mapping Vilnius as creative city, LIMES: Borderland Studies, vol. 4, No. 1, pp. 89-100. Prince R. (2010) – op. cit.; Flew T., Cunningham S. (2010) – op. cit. 25 Por. Florida R. (2003). The rise of the creative class: And how it/s transforming work, leisure, community and everyday life, New York, Basic Books. 26 Zhang H., Wang J., Liu D. (2011) – op. cit. 27 Grochowski M. (2010). Sektor kreatywny w Warszawie. Potencjał i warunki rozwoju [as cited in] Kreatywni. Twórcze życie w Warszawie. Przewodnik po warszawskim sektorze kreatywnym; Warszawski Program Rozwoju 24

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Studies involving the models of support for the creative sector, including developing entrepreneurial attitudes and stimulating cooperation, enabled us to distinguish four main approach-based strategies used in different geographical regions. These models include28: •

the American model, which takes into consideration the issues of the importance of art and culture in social development, and also includes the major role of copyright when focussing on the development of the film and entertainment industry. Support programmes to a large extent account for local specificity and the development policy of national creative cities,

•

the European model highlights the importance of culture’s mission (and especially of cultural institutions in the public sector) and its significance for the policies aimed at fighting social exclusion,

•

various Asian models focus on bolstering the parts of the cultural and creative industries which are oriented towards generating profit. They highlight the role of socio-cultural and political conditions which can determine the developmental directions for the creative sectors and should also be included in the formation of support programmes for this sector. Efforts undertaken in this field focus on bolstering exports and national or regional branding.

•

Developing-countries models (Latin America, South Africa, the Caribbean) see the role of the creative sector from the perspective of national-heritage protection, combating poverty, and providing basic infrastructure.

Kultury, http://www.dziennikarzerp.pl/wp-content/uploads/2012/04/za%C5%82%C4%85cznik-PRK-poautopoprawce.pdf 28 Flew T., Cunningham S. (2010) – op.cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

2.2. Innovation in the creative sector – inter-sector contacts Innovativeness has long been seen as a key condition, not only to the enterprise’s success, but also as the basic requirement for its presence on the market, which already by J. Schumpeter29 was identified as a fundamental rule for running a business. Innovativeness refers to many Innovations as a result of inter-sector cooperation The links between the creative sector and entrepreneurs representing the more “traditional” industries can yield innovations, e.g. in marketing (an advertising campaign, packaging design), but also in products (e.g. the design of a new car, a piece of furniture, or an everyday-use product). Cooperation with a creative company can directly translate into its partner’s innovation processes. Owing to such cooperation the performance of the creative sector and its business partners is improving. However, for such cooperation to come to existence it is necessary to understand the needs and benefits of both parties. Currently, such cooperation is restricted – there are no systemic solutions that can facilitate it (e.g. cooperation platforms, or creative-service brokers). Contacts between artists and “traditional” sectors are also hampered by prejudices and superstitions on both sides. Entrepreneurs in “traditional” industries are often oblivious to the benefits they can acquire from cooperation with the creative industries (a better-designed product is not only about aesthetics, but also ergonomics, and often safety), they are also not aware of the amount of work needed to present a finished project, and thus they cannot appraise or reward it adequately. On the other hand, artists are not always prepared for negotiations with their partners from another industry, or for the necessity to reach a specific compromise between their aspirations and the client’s needs, and also, quite often, they just fail to “sell” their idea well or secure their copyrights.

dimensions of a company’s operations – most often it is simply associated with new, refined

versions

available product or service (e.g.

technological

innovation, the addition of new

performance

characteristics); however, it can also include facilitating processes and organisational structures, management, or implementing

new 30

marketing solutions . The scope

and

innovations

range can

of differ

depending on the sector’s specificity – they can be comprehended differently in the traditional and the creative sectors. Finally, yet another type of innovation is the most coveted direction characterised by the creation of new products or services at the meeting point of different industries and sectors by the transfer of solutions onto different organisational or market conditions and thus creating a

Joseph Schumpeter, the Austrian economist (1883-1950), introduced the concept of innovation to the economic literature. 30

Starczewska-Krzysztoszek M. (2008). Ranking najbardziej innowacyjnych firm w Polsce, PKPP Lewiatan, http://pkpplewiatan.pl/_files/publikacje/Ranking_firm%20innowacyjnych.pdf Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

wholly-different package . Examples of such innovations are the embedding of an mp3 player into sports equipment or the development of an employee recruitment programme utilising candidates’ character traits32. The creative sector can also play a major role in the innovation process. Creative-sector innovation stems from the search for novel solutions, not necessarily within the framework of a specific industry, but at the meeting point of different sectors. It is the interaction between employees in different industries (e.g. entertainment and IT, industrial design and work), different units (e.g. marketing and production), and different professions and social groups, which comprises the main premise of the development of

Blue-Ocean Strategy

innovative attitudes in the creative

Innovation in creative sectors corresponds to Blue-Ocean Strategy, which rejects the necessity to thoroughly analyse the sector and the market (e.g. client segmentation, Porter’s five forces analysis, strategic-group analysis). In place of classical strategic management, it proposes a broader view on the market without the precise setting of its borders, activities across sectors, and at the meeting points of different strategic groups. Blue-Ocean Strategy aims at offering an innovative solution, simultaneously with the maintenance or even lowering of prices. Reference books also highlight the interaction between the triad’s elements – recipients (customers). material or distribution, and production.

sector .

Studies

concerning

the

innovativeness in the economy have found that creative-sector economies are among the most innovative, owing to both novel products and to the possibility

integrating

different

industries and sectors . Innovations in the creative sector are based on an interdisciplinary approach, the dynamic exchange of experiences, the intertwining of many approaches and strategies, while the search for innovative solutions is the main mechanism explaining both the development of the creative sector and of the creation of networks and 35

clusters . Cooperation between creative and new-technology industries is a specific source of

Prince R. (2010). Globalizing the creative industries concept: Travelling Policy and transnational policy communities, The Journal of Arts Management, Law and Society, vol. 40, pp. 119-139.

Tests to evaluate the candidate's personality are becoming commonplace in the recruitment process. Such instruments include the Thomas Personal Profile Analysis (PPA), the Insights Discovery model (based on Carl Gustav Jung's personality theory) or the SuccessInsights tests. For the overview of such tools, please consult “Doradztwo zawodowe. Wybrane metody badań” by Anna Paszkowska-Rogacz (2009).

Wilson N. (2010). Social creativity: Re-qualifying the creative economy, International Journal of Cultural Policy, vol. 16, No. 3, pp. 367-381. 34 Mueller K., Rammer Ch., Trüby J. (2008). The role of creative industries in industrial innovation, ZEW - Centre for European Economic Research Discussion Paper No. 08-109. 35 Stam E., de Jong J., Marlet G. (2008). Creative industries in the Netherlands: Structure, development, innovativeness and effects on urban growth, Geografiska Annaler: Series B, Human Geography, vol. 90, No. 2, pp. 119-132. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

innovations (e.g. new communication technologies, the operation of social media) . Innovativeness is also a basis for the development of a competitive edge in respect of both particular companies and whole national economies37. Interestingly enough, innovativeness 38

and effectiveness go hand in hand and do not rule out but complement each other . The analyses of innovative companies in the creative sector reveal several important features. First of all, these companies are characterised by great diversity when it comes to industries and organisational forms. Maintaining this diversity in a cooperation network or in a cluster is of key importance to achieving good economic results, as this includes cooperation between 39

different links within a complete value chain . Great diversity was also identified in respect of 40

employed business models , whose shape and rules of operation do not only reflect the specificity of the product and “supply” process, but also react to external changes, e.g. to copyrights. In Table 2 we can find the key elements of a business model. Table2. The key elements of a business model Customer relations / a Key activities /

Value offered to

distribution, sales,

Key resources

customers

and

Key partners

Market segments communication channel

Cost structure

Cash flows, revenues

Source: Osterwalder A., Pigneur Y., Tucci Christopher L. (2005). Clarifying business models: Origins, present, and future of the concept," Communications of the Association for Information Systems, vol. 16, Article 1.

Various business models are an effect of the diversified meaning of particular elements. For

Prince R. (2010) – op. cit. Huang Y.-H. (2011). An explanatory study of the competitive strategy of cultural and creative industries in Taiwan, European Journal of Social Sciences, vol., 20, No. 3, pp. 391-400; Pokarier C., Tamiya Y. (2007). ‘Brand Japan’ and the th internationalization of Japanese creative industries, 15 Biennial Japanese Studies Association of Australia, Australian National University,http://ssrn.com/abstract=1560506 38 Wong P.K., Ho Y.P., Singh A. (2005). Singapore as an innovative city in East Asia: An explorative study of the perspectives of innovative industries, World Bank Policy Research Working Paper No. 3568. 39 Huang Y.-H. (2011) – op. cit. 40 Searle N. (2011). Changing business models in the creative industries: The cases of television, computer games and Music, UK Intellectual Property Office. 37

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

example, the model of low-cost carriers focusses on different key resources and other segments of the market than the model of luxury carriers. A business model, in its simplest definition, states where the revenue will be generated – from the sales of a product, from an after-sales service (e.g. printers and toner replacement), from using services provided by a product (e.g. phone calls), from end- or intermediate customers (e.g. advertisements on websites). All these factors make up a business model which can later be changed in accordance with the changing external conditions. The ability to react adequately and adjust one’s model to current needs is also seen as a manifestation of innovative operation. Cooperation between companies aiming at developing new solutions blurs the borders 41 between them and facilitates the intertwining of particular industries . Analyses highlight the strong dynamics of changes in the creative sector, which stems from substantial development possibilities in the case of launching a truly novel and original product onto the market. Australian researchers suggested four models depicting the mutual relations between entities in the framework of cooperation between the creative sectors and the traditional-industries companies. These four models include42: •

The welfare model, which implies a negative impact of the creative sector on the remaining entities with whom it cooperates. In this model the products and services of the creative sector are characterised by high cultural value, but low market value or low value-added for consumers. What follows is the overconsumption of resources (e.g. human resources, knowledge, and national support). Such a situation can take place when the creative sector develops without taking into account customer preferences or market conditions, and thus absorbs value from other industries and cooperating companies and also takes over transfers from the public sphere (e.g. in the form of subsidies). Such a situation translates into poor financial results and a low rate of the sector’s growth.

•

The competition model recognises the creative sector not as an industry providing specific aesthetic sensations, but as yet another sector operating under the same conditions as other sectors. In this approach the creative sector remains neutral considering other industries and cooperating companies. While assessing the creative sector the same indices should be used for the assessment of its effectiveness and financial results as for other industries. Creative entities need to face the same requirements in terms of business preparation and market knowledge, and the sector itself is subject to the same processes as can be observed in other sectors (stages of development, consolidation processes, and competition).

•

The growth model anticipates the positive effects of the cooperation between creative-sector companies and companies in traditional sectors. The creative sector contributes new material, new solutions, and business models, which haven’t been taken into account by traditional-sector companies. As a result of such cooperation new market niches are created and new industries are

Searle N. (2011) – op. cit. Potas J., Cunningham S. (2008). Four models of the creative industries, International Journal of Cultural Policy, vol. 14, No.3, pp. 233-247.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

developed which can better answer the needs of customers and contribute to the growth in the whole economy. •

The innovation model classifies the creative sectors not as separate industries, but as elements in the innovation of the traditional industries, which, according to Schumpeter’s approach, must react to changes in their surroundings and the emerging expectations and needs of customers, and also must develop their creative activity.

The authors of the above taxonomy conducted empirical research which indicates that, in Australia, the cooperation of the creative-sector companies with traditional-sector companies takes place in line with the scenarios described in the growth and innovation models, which 43

anticipate positive results for such cooperation . Here, it is worthwhile taking a closer look at the potential benefits stemming from this cooperation. Aside from the obvious and measurable results (the preparation of a new product, the implementation of an important change in marketing or the organisation), partners can achieve much more. The benefits resulting from the intertwining of industries and acting across sectors are presented in Table 3. Table 3. The benefits for creative and traditional companies stemming from mutual cooperation Arguments for a creative company advocating cooperation with traditional companies

Arguments for a traditional company advocating cooperation with creative companies

Organisational support, access to a client database,

Extensive flexibility of operation, the possibility

access to distribution channels

of adjusting to very specific, unexamined, clients’ tastes

Financial support, access to funding

A chance for a high return on investment, a possibility of product/service diversification

The opportunity to achieve synergistic effects

Access to know-how, the possibility to use the new

Access to new ideas and a novel organisational

partner’s experiences

culture

Access to the market, business partners network,

Access to unique knowledge and top-quality

and experience of a traditional company

specialists

Source: own work.

Potas J., Cunningham S. (2008) – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

As we can see in Table 3, the exchange of experiences, the mutual utilisation of partner’s strengths, and the meeting of diverse organisational cultures, are important benefits stemming from cooperation between creative and traditional companies. We should also highlight that the cooperation between various operational forms (private companies, public companies, non-profit organisations) becomes a key challenge here. This issue is often being brought up in discussions by practitioners, and also in studies in the field of, e.g. public-private partnership. Despite the substantial potential displayed by such cooperation, they indicate many barriers and hindrances to the effective implementation of projects, in which the diverse entities participate. The main issues include different approaches to the commercialisation and profitability of the project, time pressure, leadership and work style, motivational and communication systems, or the scope of formalisation (different legal requirements). Therefore, one should be aware that such cooperation is burdened with serious risks. Nevertheless, and especially in the creative sector, the cooperation of the entities of a different kind can turn out particularly beneficial, as it enables the flow of cultural material between its authors and entities that commercialise it.

2.3.

Incubation (start-up) - a supply chain

The incubation process of the entities running a business in the creative sector is closely connected with the notions of entrepreneurship and entrepreneurs present in Polish discourses on the economy. In its common understanding, entrepreneurship is the ability to take up ventures which are aimed at generating revenue44; it is a characteristic of people who are active and energetic, and achieve success in organising and managing enterprises45. Another take on this term depicts entrepreneurship as a feature, understood as the readiness and ability to take risks and solve problems in a creative and novel way, the ability to capitalise on emerging chances and opportunities, and also to flexibly adjust to ever-changing conditions46. The concept of entrepreneurship has been defined by many economists. The respective definitions, coming from various periods in the history of socio-economic thought, indicate the different roles of the entrepreneur, and ascribe to him or her diverse features.

Innowacje i transfer technologii. Słownik pojęć, ed. K. B. Matusiak, 3rd ed., PARP, Warsaw 2011, p. 229. Innowacyjna przedsiębiorczość akademicka – światowe doświadczenia, red. J. Guliński, K. Zasiadły, 1st ed., PARP, Warsaw 2005, p. 9. 46 P. F. Drucker, Innowacje i przedsiębiorczość. Praktyka i zasady, PWE, Warsaw 1992, pp. 34-35. [as cited in] Przedsiębiorczość stymulatorem rozwoju gospodarczego, eds. J. Brdulak, M. Kulikowski, Instytut Wiedzy, Warsaw 2004, p. 15. 45

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Start-up A company at the very early stage of its development, or an entrepreneur who just plans to establish an economic entity. At this stage there already exists an initial idea for a product or a service which may be offered; however, what is being sought is an optimal business model, which will facilitate the quick development of an enterprise

You can find a summary of these definitions in the table below.

Table 4. The evolution of the concept of the entrepreneur in economic studies Year

Author

Achievement in developing the concept of the entrepreneur

1755

R. Cantillon

The introduction of the concept – entrepreneur The entrepreneur as a speculator

1800

J. B. Say

The entrepreneur as a coordinator

1890

A. Marshall

The entrepreneur as a coordinator, innovator, and arbiter

1907

F. B. Hawley

The entrepreneur as an output owner (subject to uncertainty)

1911

J. Schumpeter

The entrepreneur as an innovator

1921

F. Knight

The entrepreneur as a responsible decision-maker in uncertain environment

1925

F. Edgeworth

The entrepreneur as a coordinator

1925

M. Dobb

The entrepreneur as an innovator

1927

C. Tuttle

The entrepreneur as a responsible owner in uncertain environment

1973

I. Kirzner

The entrepreneur as an arbiter “alert to profit opportunities”

1982

M. Casson

The entrepreneur as a coordinator of rare goods under uncertain conditions

1993

W. Baumol

The entrepreneur as an innovator and manager influenced by the existing stimuli structure

Source: R. Aidis, Entrepreneurship and Economic Transition, Tinbergen Institute, Amsterdam 2003, p. 3 [Table http://www.tinbergen.nl/uvatin/03015.pdf.

1], Venture capital and seed capital

Capital coming usually from private sources (or rarely from public-private sources) invested in business The concepts of the entrepreneur and ventures. Venture funds are also called high-risk funds, because they enable you to provide with capital such entrepreneurship are closely connected with projects which provide a high rate of return, but which are also connected with a high investment risk. The the creation of the supply chain: from the investment can aim at the development of a new product, initial idea to product manufacturing and the implementation of a new technology, or, simply, the bolstering of an enterprise. Venture capital comprises an delivering it to the customer. We should important alternative to banks which usually maintain a more conservative credit policy. At the same time, it is a highlight here that in the case of the creative very demanding instrument – such funds engage only in the best, specific, and meticulously-prepared investment plans, so as to reduce investment risks and maximise the chances to achieve a highA study rate of return. Seedsector capital Initial report: of the creative fundsofcomprise a specific segment such instruments, for the purposes the European Creative ClusterofLab (ECCL) project directed at companies at the early stage of their 22 development.

sector we are dealing both with purely commercial products and with cultural goods. These two types of goods satisfy different customers’ needs, and thus should be evaluated using different criteria. All activities aimed at supporting the creative sector should take into account these distinctions. In the field of culture, public intervention can be justified extra-economically. Due to the high uncertainty of demand and the substantial costs of creative processes (also stemming from a short product lifecycle), goods which do not interest mass customers require additional support. Therefore, public support should include the production and distribution of goods deemed the most valuable or the reduction of the price barrier in the consumer’s access to such goods.47 On the other hand, the instruments of the sector’s support should take into account the needs and conditions of those creative entities whose operations are aimed at generating profit. It is of key importance to the development of a synergistic effect between different industries, organisational forms, and business models. Only a comprehensive support system, taking into account diverse instruments, both those of a direct (e.g. subsidies) and indirect character (e.g. tax relief) or financial engineering instruments (e.g. seed-capital and venture capital funds), will be able to effectively support this sector. The key assumptions one should remember while developing the tools for supporting the incubation process (and also the directly-connected value chain creation process) are 1. The diversification of financial and economic efficiency depending on the

organisational form – running a business in creative sectors can have various organisational forms like: 48

a. an institution run under the Act on Cultural Activities , 49

b. an institution run under the Act on Public Benefit and Volunteer Work , c.

an institution run under the Act on Freedom of Business Activity , 51

d. an institution run under the Code of Commercial Companies Act .

Ilczuk, D., Wieczorek, A. Przemysły kultury.

The Act of October 1991 on organising and managing cultural activity, and several other Acts, as announced by the Sepaker (Marshal) of the Sejm of 26 March 2012 on announcing the consolidated text (JoL, item 406). 49 The Act of 24 April 2003 on public benefit and volunteer work, Journal of Laws of 2003 No. 96 item 873 as amended 50 The Act of 2 July 2004 on freedom of economic activity, Journal of Laws of 2004 No. 173 item 1807 as amended Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

2. The potential diversification of financial and economic efficiency depending on the

industry – cultural and creative industries are characterised by diversified levels of financial indices, time-consumption, capital-intensity, commercialisation possibilities, and the ability to assimilate innovations aimed at an increase in productivity52. Such parameters as employment level, financial result and productivity will always place in a favourable position those industries where we deal with large entities, and where the specific nature of operations involves, e.g., substantial enterprise budgets53. 3. Striving for the initiation of synergistic effects between various players in the creative

sector and between various support instruments. The creative sector functions at the meeting point of many areas of socio-economic interaction. Its functioning can be affected by, among others, institutions coordinating cultural policy, fiscal policy, support in the framework of designated and earmarked subsidies, the distribution of financial resources from public funds created for commercial and non-commercial purposes, economic policy, the promotion of the Polish economy and its regions abroad, social policy, and educational policy. The multitude of these institutions hampers the coordination of support and the creation of a synergistic effect between its particular elements.

3. The results of local research 3.1.

The creative sector in Warsaw

3.1.1. Creative entrepreneurship and cooperation, i.e. how to transfer ideas onto the market

The Act of 15 September 2000 - Commercial Companies Code, Journal of Laws of 2000 No. 94 item 1037 as amended 52 For more about the “Baumol’s cost disease,” see: W.J. Baumol, W. Bowen, Performing Arts – The Economic Dilemma. Study of problem common to theatre, opera, music and dance. The Twentieth Century Fund, New York 1966, pp. 181-183. 53

For example, in terms of value added the advertising industry occupies the first place, further places fall to publishing and broadcasting. When it comes to the level of productivity (value added to number of employees ratio), the highest values are being noted in the cable networks and in broadcasting industries. The lowest level of productivity is ascribed to newspaper, books, and music sales and to literary and artistic activities and artistic institutions activities (cf. Lewandowski, P., Mućk, J., Skrok, Ł. Znaczenie gospodarcze sektora kultury. Wstęp do analizy problemu. IBS 2010) Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

In Warsaw, there are around 6,700 companies operating in the creative sector, and most of them are located in the Śródmieście, Włochy, Wilanów, Mokotów, and Żoliborz districts. As analyses show, the creative sector is dominated by companies in the advertising industry (21% of companies). Another two important industries are architecture and traditional publishing. Among the most important assets of this city, which make it an attractive place to run a business in the creative industry, we should enumerate: •

A high concentration of companies that can comprise potential partners, suppliers, or consumers of the services offered by the creative sector; the proximity and diversity of other enterprises is conducive to cooperation,

•

the presence of top-class specialists (graphic artists, IT specialists, actors, makeup artists), which can be involved in joint ventures,

•

a high share of affluent individual customers (residents and people visiting the city), interested in more-sophisticated products and services.

What is more, the representatives of local creative companies highlight that running a business in this city is further facilitated by the capital’s prestige, the large number of investments, and the continuous development of the city, as well as the plethora of business, media, and cultural events. We should not forget, however, about the difficulties that creative entrepreneurs have to face. Among the most important barriers they enumerate the high cost of office space leases (which sometimes have to be specially furnished, e.g. a rehearsal room), a fast pace of life, and the connected haste and competition, or the still unsatisfactory level of 54 residents’ participation in cultural events . Despite the idea of supporting the creative sector’s development still being relatively new in the capital, we can indicate several already-implemented initiatives which were aimed at creating favourable conditions for creative entrepreneurship and cooperation in this sector. It is worth highlighting that the need for such actions is being noticed by the Local Government, which not only conducted an analysis of the creative sector in Warsaw, but has also been actively participating in the implementation of undertakings for the development of the sector, by initiating many of the following operations. The Cultural Development Programme of Warsaw The development of creative entrepreneurship and cooperation has been included in the document called the Cultural Development Programme of Warsaw for 2020 (PRK)55. The main priority of the PRK is the development of the unhindered creation and extension of a cultural package, which is being accompanied by the development of cultural infrastructure (including the already-existing and new cultural venues). In addition, it assumes an increase in the cultural participation of all the residents of Warsaw, which entails the development of cultural education and supporting cultural activity, as well as the utilisation of new technologies facilitating common access to cultural goods. Finally, the implementation of the Cultural Development Programme of Warsaw will contribute to the branding of Warsaw as a European city of culture, which shapes its modern identity and appreciates its roots. Among the

Grochowski M. (2010) – op. cit. Warszawski Program Rozwoju Kultury (Appended to Resolution No. XXXIV/839/2012 of the Warsaw City Council of 29 March 2012) – op. cit. 55

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

objectives of the Cultural Development Programme of Warsaw are : •

an increase in and the intensification of participation in culture, and the stimulation of the social and cultural activity of residents,

•

the support of creation by the popularisation of culture and art, and also by the development of the creative sector,

•

the improvement in the condition and accessibility of cultural infrastructure, the improvement in the quality of public space, and its better use for cultural activities,

•

the branding of Warsaw as a respected European city of culture,

•

the creation of a modern Warsaw identity with respect for tradition and multiculturalism,

•

the improvement in the quality and efficiency of cultural management.

Creative Metropoles This project was implemented by 11 European cities and was aimed at the exchange of knowledge and experiences, and also at the development of new standards of pursuing public policies in respect of supporting creative industries. Warsaw’s participation was connected, among other things, with the drawing up of an analysis of the creative sector’s development in the capital (Grochowski, M. Sektor kreatywny w Warszawie. Potencjał i warunki rozwoju. Warsaw 2010), the organisation of an international conference devoted to the overview of policies implemented at the local level in sister cities, the organisation of a series of workshops and meetings, e.g. connected with the compilation of suggestions for bolstering cooperation within the local society and creativity in the Praga Północ district, and also with the preparation of suggested actions which could be initiated by the Local Government in order to boost the creative sector in Warsaw. The initiatives launched in the framework of the Creative Metropoles project included among others, the creatives.waw.pl portal and a series of meetings under the banner of Creative Mixes (see below).

The Creative Mixer These cyclic events, co-organised by the Capital City of Warsaw Municipal Office and British Council, are aimed at the integration of the environment connected with the creative sectors and the promotion and popularisation of ideas to support this sector. Each of the meetings revolves around a different topic. So far there have been discussions held about, i.a., the expectation and needs connected with the creation of a new creative entrepreneurship centre (Targowa 56 Creativity Centre), the benefits of the cooperation within clusters, and the experiences connected with running a business in the field of artistic handicrafts. Aside from the seminar section, organised in the form of experts and practitioners’ presentations, the meetings also include a networking element – their participants can talk in a less formal atmosphere, exchange their experiences and establish new contacts, which are so important when it comes to the development of creative activity. 56

Warszawski Program Rozwoju Kultury – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

creatives.waw.pl This portal is directed at people involved in the activities of the cultural and creative industries, and offers information on current events and undertakings aimed at them. It also features an on-line platform which enables you to create your own profile and establish contacts with other people operating in a similar area. Therefore, the portal has two fundamental functions. Firstly, it collects and makes available theoretical knowledge and practical information on the cultural and creative sectors. Secondly, it is a social tool which enables you to create a network of contacts and co-create new material (publishing articles). In line with its creators’ assumptions, the bulletin is also to play the role of a consultative tool in designing the elements of the support policy for creative industries. The portal is administered by the Capital City of Warsaw.

The Warsaw Creative Sector Cluster (ArtKlaster) 57

The concept of the Warsaw Creative Sector Cluster was created in 2009 on the Pro Cultura Foundation’s initiative58. The establishment of the cluster accompanied the implementation of the Creative Metropoles project. The Warsaw Creative Sector Cluster went beyond the definition of an industrial cluster, as it was to combine the functions of a science park, an entrepreneurship and innovation incubator, and of a knowledge transfer centre. Its operations were to support the development of already-existing entities and the establishment of new ones. An important objective formulated for the cluster was to support young artists and producers who had ideas for projects with economic potential, but lacked the resources and infrastructure to implement them. However, this idea was not implemented due to the lack of funds, and more importantly, a building which would meet the requirements of such a large undertaking. Under the ArtKlaster’s banner, there was created a portal, which later on was used to promote other activities undertaken within the framework of the Creative Metropoles project, mostly local workshops aimed at the development of the Praga Północ district.

Entrepreneurship in the creative sectors In the context of analysing creative entrepreneurship and cooperation, it is worth mentioning the project which is being implemented by Kozminski University, “Entrepreneurship in the creative sectors,” 59 which is aimed at stimulating the development of new, dynamically-growing companies . This project

Pałasiński A. (2011). Policzyć przemysł kreatywny, http://www.businessandbeauty.pl/policzyc-przemyslkreatywny/

Pro Cultura Foundation was established in 2003 to carry out research on culture and to promote best practices in culture management and financing, thus leveraging its growth. The Foundation is committed to propagating knowledge and encouraging the exchange of experiences in respect of culture, media, and new technologies, both at the national and international levels. It initiates and takes active part in international research into culture, its branches and new IT technologies. It focuses on initiating public debate on culture, with special attention to cultural policy. For more information, please visit http://procultura.pl/o-nas 59 http://www.kozminski.edu.pl/pl/oferta-edukacyjna/studia-i-projektydofinansowane/szkolenia/przedsiebiorczosc-w-sektorach-kreatywnych/ Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

offers support for people who plan to set up a business which includes training courses, individual 60 counselling, and subsidies to set up a company . The project is further supplemented with research, as well as training and support programmes based on experiences from previous projects implemented by the University (the “How to set up your own business” project or by the Capital City of Warsaw Municipal Office, which were contracted to the University (Warsaw as the capital of ambitious businesses).

The Fabryka Trzciny Art Centre Another example of creative entrepreneurship and cooperation is the Fabryka Trzciny Art Centre, 61 established in 2003 . It is a private arts centre set up in revitalised, post-industrial facilities in the Praga district in Warsaw. The centre’s operations include diverse artistic activities, i.a. theatrical performances, exhibitions, festivals, concerts, lectures, and debates. Fabryka Trzciny also houses a restaurant, exhibition space, club, and conference halls, and, since 2005, a theatrical stage called Praga New Theatre. At the same time, this space can be used by other institutions interested in organising conferences, meetings, performances, and exhibitions.

The Praga Project / SOHO Factory 62

The Praga Project was launched by Marcin Garbacki, an architect, the originator of a loft design in Polskie Zakłady Optyczne [Polish Optical Plants] facilities. At the beginning, its operations revolved mainly around the field of design, but this activity was soon expanded into the operations of the Artanimacje association, which has taken up many cultural projects aimed at the revitalisation of the old PZO Factory at ul. Grochowska 316/320 and its vicinity. During the three years of its operations, there were eight events held including the ones connected with music (Sound-Processing Plant, three days of concerts encompassing different music types), design (Recycles, an event combining design with the idea of recycling, during which the artists create new objects from recyclables), and theatre (the Dreams’ Factory). One of the results of the implemented activities was the establishment of the SOHO Factory – space on ul. Mińska, using post-industrial buildings, and designed for companies and institutions operating in the creative sector. Aside from office space, in which there are located, among other things, an architectural studio and a magazine editor’s office, SOHO also offers space for cultural and lifestyle events (i.a. concerts, vernissages, and fashion shows). In prospect, the SOHO Factory is also to feature residential space – part of the area will be taken up by a housing estate with a shopping and service centre, and it will also include a kindergarten, a coffee club, and restaurants.

3.1.2. Innovation (inter-sector contacts) Innovativeness in the creative sector is still a fairly new issue, and so there are not many materials and 63 analyses in this field . Though the Mazowieckie Region, and especially the Warsaw District, is in the

In the 1990s Polish producers, and http://www.kreatywni.waw.pl/ 61 especially those who had just started http://www.fabrykatrzciny.pl/caft/centrum 62 their businesses, were notorious for http://www.sohofactory.pl/content/idea travelling and taking concepts and 63 Cf. Ecorys (2009). Analiza potrzeb i rozwoju przemysłów kreatywnych, copying them. Fortunately, more and http://www.mg.gov.pl/files/upload/10147/Analiza%20potrzeb%20i%20rozwoju%20przemyslow%20kre more companies are now aware that atywnych.pdf this is not the way, as these are very short-term solutions. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Sformatowano: Czcionka: (Domyślny) Calibri, 10 pt, Polski Sformatowano: Polski

lead in the field of innovativeness in Poland when compared to other European, Asian, or American 64 cities and regions, its results are running at a fairly low level . Another hindrance to the analysis of the innovation level in the creative sector in the Warsaw District is the lack of clear criteria for the assessment of the phenomenon of innovativeness in the creative sector, as the devised indices mainly refer to the level of innovativeness in the economy as a whole or in particular companies (e.g. the 65 number of patents and publications, institutes and incubators) . Innovative solutions implemented in creative companies are of different character from innovative technologies in their traditional sense, and therefore are much more elusive in the form of quantitative indices. Below there are brief characteristics of selected companies operating in the Warsaw District, which can be seen as examples of innovativeness in the creative sector.

CD Projekt Red

computer games

CD Projekt Red is one of the leading publishers and distributors of video games for PCs and consoles, and since 2009 it has also offered films on DVD and Blu-ray. The company publishes localised (i.e. translated into the local language) PC, Xbox 360, and Playstation 3 games from many global producers and publishers. The development and creation of games about the Witcher, Geralt of Rivia, turned out to be a great success, and the sales of both PC games exceeded 3 million copies. The CD Projekt RED studio employs world-class Polish and foreign specialists in the fields of graphics, animation, software, and design.

Internet Group SA

software

Internet Group S.A. is a company operating at the meeting point of the counselling and computer software sectors. It is a holding of companies designing and implementing marketing programmes to support sales with the utilisation of new media, new technologies, and modern customer-reach channels (the Internet, call centres, mobile telecommunications). The company’s philosophy is based on close cooperation between entities, and also on the synergy and integration of products, solutions, services and customer bases.

Medicalgorithmics sp. z o.o.

software

Medicalgorithmics sp. z o.o. is a company operating at the interface of the health-protection, computer software, and modern medical-equipment sectors. Owing to its technology called Digital Signal Processing (DSP) the company develops algorithms which enable you to diagnose health problems (e.g. Pocket ECG, which is a global leader in the field of mobile equipment for diagnosing cardiac dysrhythmia).

Płoszaj A., Olechnicka A., Smętowski M., Wojnar K. (2010). Warszawa innowacyjna – diagnoza potencjału, Opracowanie wykonane na zlecenie Miasta Stołecznego Warszawy. 65

Sformatowano: Czcionka: Calibri, 10 pt

Starczewska-Krzysztoszek M. (2008) – op. cit., Płoszaj A., Olechnicka A., Smętowski M., Wojnar K. (2010) – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Infinity Media

media

Infinity Media is an independent Media House skilled in the planning and sales of all media. Infinity Media operates on the media and advertising market using the Internet, press, radio, television, outdoor, and ambients. As a company which is not a part of a large corporation or network, it offers a personalised customer approach, substantial flexibility, and non-standard solutions. It ensures rapid contact with a customer by, among other things, the possibility of direct briefing at the level of the company’s website. The company’s customers include the Allegro group, the City of Poznań, and the Egmont publishing house.

Macrologic S.A.

software

Macrologic S.A. is a company operating at the meeting point of the counselling and computer software sectors. The company provides modelling services in business processes realised both in operations management — production, logistics, sales, and marketing, and in auxiliary activities — accounting, payroll, tangible assets, using IT technologies and modern systems (ERP, HRM, HCM, BI and many more). These services, thanks to the sharing and exchange of information (information circulation),help to forecast and plan future operations using full knowledge within the enterprise (finances, control) while maintaining quality standards (quality management).

Graphology Solutions Group

graphological consultancy

Graphology Solutions Group specialises in graphological and coaching using computer software which studies the style of graphology. Graphological consultations are based on established British standards and are aimed at top-level managing staff in companies and institutions. The company’s services support recruitment processes, defining personnel potential and career paths, business partners’ and team-members’ compatibility assessment, managers’ self-assessment and self-development, coaching processes, and all other undertakings in human resources departments.

Badi Badi

video post-production

Badi Badi is a specialist post-production studio which deals in the post-production of commercials, video clips and films, 3D animation, and production support on the side of computer-generated special effects. The company offers support for advertising projects from the stage of the storyboard, design cooperation, supervising effects at filming locations, projects, and the realisation of digital sets and backgrounds, to editing, compositing, 3D animations, and sound design. The company also produces independent animated movies and creates music videos based on special effects and animation.

Papryka & Synowie

music production

Papryka & Synowie is a sound studio run by a group of artists which bring together creativity, genuine

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

technique, and perfect understanding of the requirements set by modern music production and its consumers. The studio offers the following services: custom-made music composition (on-set composers), advertising jingles composition and realisation, sound effects composition and realisation, sound post-production and commercials realisation (cinema, radio, TV, the Internet), feature films sound post-production, film voice-over recording, audiobooks recording and realisation, helpline recording and realisation, singers, instrumentalists, and band recording, film dubbing, and also sound material cleaning and reconstruction.

Rodan Systems

software

Rodan Systems is an IT company and a supplier of IT systems. The object of the company’s activities is the production and implementation of application software, as well as the delivery and installation of utility software. The company is a provider of software which supports information management (own platform OfficeObjects®), which facilitates comprehensive business-process management, the creation and publication of electronic forms, and also intelligent data collection and management, as well as knowledge management. In addition, the Rodan Systems’ package features document circulation and work-management systems - OfficeObjects® DocMan and OfficeObjects® Document Manager - and also OfficeObjects® Service Broker for the creation and integration of IT systems, and also for the implementation of services on Internet portals. The company also offers services for handling digital signatures, Certification Centres, e-offices, of the implementation of public-procurement processes, and also of accounting evidence circulation for public and local administration offices of different sizes, as well as for enterprises. It is also worthwhile mentioning bridging organisations which are active in supporting technological 66 67 transfer in the Warsaw District and academic business incubators . Our information reveals that none of these initiatives is particularly focussed on supporting innovativeness in the creative sector.

3.2. Suggesting support tools for the creative sector in Warsaw Creative entrepreneurship and cooperation, i.e. how to transfer ideas onto the market The overview of literature and interviews with the representatives of creative industries conducted for the purposes of this project allows us to suggest tools which aim at the facilitating and support of creative entrepreneurship and cooperation. The devised tools should be divided into two groups: 1) diagnostic tools, and 2) development support tools.

Universities (The Centre for Technology Transfer of the Warsaw University of Technology, University Technology Transfer Centre), JBRs (Technology Transfer and Innovation Promotion Centre at the Institute of Mechanised Construction and Rock Mining, the Mazowieckie Centre of Auxiliary Services for Innovators at the Electrotechnical Institute, The Centre for Innovation and Technology Transfer at the Tele and Radio Research Institute),and NGOs (The TECHNOLOGY PARTNERS Technological Partnership Foundation, the “Innovation Centre FIRE” Foundation, the Energy Conservation Foundation) 67 The Academic Business Incubator (AIP) by the University of Warsaw (38 companies), AIP by the Warsaw University of Technology (60 companies), AIP by Warsaw School of Economics (100 companies), AIP by Łazarski University (16 companies), AIP by Warsaw School of Information Technology (20 companies).

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Diagnostic tools boil down to the necessity of conducting thorough research on the state of development of the creative sector in Warsaw, with special attention given to: •

statistical data – estimating the number and size of creative entities, organised according to particular industries,

•

economic data – estimating employment, generated value, and the pace of development of creative entities,

•

drawing up a map of the creative sector – the identification of connections between companies to identify network and clustercreation processes68,

•

the identification of conditions for the operation of creative companies, their specific needs, encountered barriers, and possible areas of support by the Local Government.

Such a diagnosis will to identify the precise scale of the sector’s operations, and also will point out the main directions for its development.

Evaluating the creative industries - challenges The reliable evaluation of the creative sector is a demanding task. First of all, a considerable number of businesses are microcompanies, whose reporting duties under public statistics are highly limited. On top of that, the creative industry is made up of more than just businesses. A number of artists operate as freelancers or on the basis of contracts for specific work, which keep them outside the scope of public statistics, and other databases, for that matter. Also, such freelancers frequently form informal cooperation groups, which operate under a shared brand, but are not registered anywhere. This poses a significant problem when it comes to estimating the scale of the creative-activity phenomenon. This task is further hindered by the sector's dynamism. The practice of establishing partnerships for the purposes of individual undertakings, the need for continuous development of new products, and close relationship with the IT sector, all make the necessary support subject to constant fluctuations. As a result, institutions interested in delivering assistance to the sector have to monitor its evolution on an ongoing basis to be able to provide adequate aid. Periodic quantitative analyses seem to be of particular importance here. However, these do not necessarily have to entail social studies. The sector's condition and its needs can be diagnosed by way of a dialogue, held, for instance, via the platform available on creatives.waw.pl, or regular meetings under the Creative Mixer initiative.

Development support tools boil down to the creation of conditions that are conducive to the development of entrepreneurship in the creative sector and also to offering incentives to the entities to create cooperation networks and clusters. The suggested solutions include tools of an infrastructural, organisational, and educational character. Infrastructural tools mean access to buildings, facilitating transport and communication, and also legal solutions. The implementation of these tools is expensive and hard to carry out. However, it is worth undertaking such actions, especially due to the fact that they bring about real change. The suggested infrastructural tools include

68 69

•

creating incentives to start your own business69 in the form of simplified formal requirements, introducing tax reliefs, reducing labour-costs taxation, etc., especially in the case of the first business or for people under 30,

•

incentives for creative clusters – e.g. tax reliefs, the possibility of the joint settlement of projects, and subsidies. The examples from Eastern Poland show that incentives and subsidies contribute to the dynamic creation of clusters in other industries (e.g. the

Prince R. (2010) – op.cit. Zhang H., Wang J., Liu D. (2011) – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Eastern Casting Cluster “KOM-CAST”, the Świetokrzysko-Podkarpacki Energy Cluster, the Welding Cluster“ KLASTAL”, the Eastern Green Cluster “Dom Energooszczędny”)70, •

supporting already-existing networks/clusters/associations, etc.,

•

incentives, help or consultancy to create majors, specialisations and courses connected with the creative sector at different levels of education,

•

the creation of a sub-fund for the development of the creative sector and/or a bridging institution providing funds,

•

the organisation of cultural events of a supranational, national, and local character, and their promotion.

Organisational tools relate to the provision of access to the knowledge and experience of other entrepreneurs and artists, and to help in managing cooperation networks. The implementation of such tools is cheaper, though it requires more involvement in the process of the coordination of different groups and entities. The suggested organisational tools include •

the establishment of an Internet cooperation platform between start-ups and enterprises with an established market position,

•

the patronage over or creation of meeting places, organisations/foundations/an incubator with its own brand and logo relating to Warsaw location71, whose tasks would be the support of creative companies through

•

inviting experts and leaders72 from the sector to give lectures or present reports concerning their own experiences in running a creative company,

the exhibition of artists’ works, especially during seminars, lectures, with the participation of the financial services and traditional business sectors,

counselling on leveraging financial resources from EU funds and from private investors,

counselling on the efficiency of business models in creative sectors,

counselling and support for emerging entities, which include the creative and traditional sectors and/or an institution of higher education,

the promotion of examples of creative sector companies which are successful,

cooperation with the Warsaw Stock Exchange / New Connect to create an index of creative companies,

the creation of a creative companies’ ranking/contest to promote the sector,

support, counselling, preferential treatment for the main creative companies comprising the value chain centre, around which gather partners and subcontractors73,

Osiecki A. (2012). Klastry rosną za unijne euro, Rzeczpospolita, 8 maja, s. B5. Zhang H., Wang J., Liu D. (2011) – op. cit. 72 Prince R. (2010) – op. cit. 73 Zhang H., Wang J., Liu D. (2011) – op. cit. 71

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

the promotion of the idea of alumni of schools, high schools, junior high schools, higher education institutions, etc.,

•

the promotion of involvement in the creative sector/cooperation with the creative sector as an element of business responsibility for social matters among traditional businesses,

•

the creation of social and networking centres in various locations in the city, featuring free Wi-Fi access, where employees, entrepreneurs from the creative sector, artists, students, entrepreneurs, people from the financial services sector, etc. could meet. A coffee-house chain could be invited to cooperate (e.g. Coffee Heaven or Starbucks). Such centres could also serve as a place to exhibit art,

•

the establishment of cooperation with a personnel consultancy agency/portal, which would provide information on people looking for a job, mainly in the creative sector,

•

the acquisition of media patronage – a daily, a magazine (e.g. Forbes), and a broadcasting station (e.g. TVN, CNBC),

•

a change in the business model in selected cultural organisations o

abolishing museum entry fees, like in London, in favour of voluntary donations, and also the implementation of memberships, and fees for temporary exhibitions,

the authorisation of souvenir, gadget, and food sales, as well as the organisation of events on the cultural organisations’ premises (e.g. in museums).

Educational tools refer to the provision of access to knowledge through the organisation of courses and training courses in the field of entrepreneurship, and of classes conducive to personal development. The implementation of these tools is cheaper and easier than of other tools. The suggested educational tools include

•

the organisation of programmes and courses facilitating the simulation of running one’s own business,

•

the organisation of workshops74 for children and teenagers, and also for adults developing their creativity. Such educational activities are aimed at increasing the opportunities to develop talent and highly-creative people,

•

counselling and support for schools, junior high schools, and higher-education institutions implementing educational projects aimed at the sector or creative class development,

It’s like giving money to a young entrepreneur who will then go out and buy marketing specialists, a good computer, an ad in a good portal so that the clients come. But this alone won’t make him do good business. This money will have him buying a swimming manual, but he won’t be able to swim anyway. Entrepreneurship, managing a business in general, is a result of experience and not a mere combination of components.

Zhang H., Wang J., Liu D. (2011) – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

funding/co-funding a publication (available, e.g. on the Internet) depicting case studies of creative-sector companies which have achieved success. Such examples would serve as an inspiration for the young and comprise a benchmark for subsequent projects.

Innovation – inter-sector contacts An overview of the literature and conducted interviews allows us to formulate suggestions for tools which aim at facilitating innovations in the creative sector and at the meeting point of this sector and other industries. The tools boil down to the creation of favourable conditions for the development of innovations in the creative sector and to offering incentives to the creation of a cooperation network within the sector and also with traditional companies. The suggested solutions include tools of an infrastructural, organisational, and educational character. The suggested infrastructural tools include:

People who work as graphic designers, DTP operators, all those creative jobs, by definition, and I’ve been aware of this for ages, all those people are doing odd jobs. In the evenings, afternoons, weekends, they do small orders for other creative companies or directly for people who need creative designs, irrespective of whether they operate a business activity or they work full-time – they will always do this, and, frankly, it’s up to them if they wish to formalise their activities aside from work in the company.

•

the creation of incentives to set up one’s own business or joint ventures between companies75in the form of deregulatory actions76, the simplification of formal requirements, tax reliefs, reducing additional labour costs, etc.,

•

an increase in legal efficiency77, mainly in order to protect copyrights78, and ensure agreement performance, to increase trust in potential business partners and improve the protection of innovations and novel products/services, as well as to reduce copying solutions by other companies79,

•

the improvement of accessibility to databases, scientific articles based on the examples of open content, open innovation, or open journal80

Zhang H., Wang J., Liu D. (2011) – op. cit. Huang Y.-H. (2011) – op. cit. 77 Zhang H., Wang J., Liu D. (2011) – op. cit.; Raustiala K., Springman C. (2006). The piracy paradox: Innovation and intellectual property in fashion design, UCLA School of Law Research Paper No. 06-04, Virginia Law Review, Vol. 92, p. 1687-1711. 78 Schultz M., Van Gelder A. (2008). Creative development: Helping poor countries by building creative industries, Kentucky Law Journal, vol. 97, no. 1, 79-148. 79 Hemphill C., Suk J. (2009). The Law, Culture, and Economics of Fashion, Stanford Law Review, Vol. 61. 80 Troxler P. (2009). Open content in the creative industries: A source for service innovation? w: Wolf P., Kazi S., Troxler P., Jonischkeit R. (red.) Supporting service innovation through knowledge management, Bristol: Knowledge Board, Zurich: Swiss Knowledge Management Forum. 76

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

•

the establishment of a sub-fund for research and development: o

an incentive for entrepreneurs devoting their financial resources to researchand-development work,

an increase in R & D financial resources devoted by the city.

Organisational tools refer to the provision of access to the knowledge and experience of other entrepreneurs and experts, and to supporting cooperation by the creation of bridging institutions. The city’s key task in the creative sector innovativeness development policy is to support the establishment of business relations and the exchange of information between particular entities, which, based on the British example, is indicated to be the main condition for running such a programme81. The suggested organisational tools include: •

•

the formulation of a comprehensive support policy82 for the development of entrepreneurship in the Warsaw area, which entails: o

counselling regarding leveraging financial resources from the EU funds and private investors,

promoting examples of innovative companies in the creative sector, which have achieved success83,

the creation of conditions for the development of a science park/cluster on the model of American cities (Boston, San Francisco, San Diego, Seattle, Austin and Washington DC)84: o

an area prepared for the cooperation of many different companies, on the condition of the company’s being within the creative sector or maintaining cooperation with the creative sector. As it has been signalled above, the companies’ diversity85 is key to the project and should include the necessity for the development of particular companies comprising a value You must have a desk, a working 24-hour Internet chain86, connection, so that such a person could come any

time, use the Internet, leave a laptop, print something, so that he could have guests, there should be a conference room, some space, where they could take a break, because if they, pardon o work organisation modelled the expression, slave away for 14 hours, they on Google solutions – should have a place to go there for an hour and exercise or just take a nap. If I had a place I’d increased employees’ install those Japanese hotel tubes, where you can independence, better work stash yourself for 8 hours – I mean it’s a proven ergonomics, settlement based American idea, you can Google things there and find anything, the hairdresser is there, you just don’t need to go anywhere outside the incubator. People are also needed – just as in a locksmith’s workshop it’s not enough to have a machine for injection moulding, a metalworking machine, 81 Carafa A. (2008). The Creative sector and the knowledge economy in electricity, Europe: The screwdrivers and but United you alsoKingdom’s need a creative economy programme, Social Science Research Network, http://ssrn.com/abstract=1403465 Master who will say don’t put your fingers there, 82 Prince R. (2010) – op. cit. this should be done at this angle, turn here, and 83 there you really wasted the material, and it could Huang Y.-H. (2011) – op. cit. 84 have been...something good.” Working Paper No. Wu W. (2005). Dynamic cities and creative clusters, World Bank Policy Research

preferential conditions, e.g. low rent, free Internet access,

3509. 85 Wong P.K., Ho Y.P., Singh A. (2005) – op. cit. 86 Huang Y.-H. (2011) – op. cit. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

on results (ideas), and not on working time,

•

the organisation of an annual contest for the most innovative venture of a company operating in Warsaw (the winners get measurable benefits, e.g. in the form of free promotion on the websites of the city office),

the organisation of an annual ranking of innovative companies in the creative sector in Warsaw,

the establishment of cooperation and the creation of a platform linking business with institutions of higher education, including mainly art and technical majors87, o

the creation of an Internet platform, where, on the model of the solutions in Silicon Valley88, everyone can submit their ideas, even the most crazy and groundbreaking ones. The lack of formal restrictions for the ideas’ authors can result in large number of them being submitted on the portal – in the case of an American http://itsthisforthat.com/ platform, the number of new ideas is estimated to amount to 100 a month. The platform could become a meeting place to establish cooperation between creative businesses and financial institutions (e.g. venture-capital funds), and traditional companies,

guest appearances of business representatives during lessons,

the possibility of completing an internship and an opportunity for students to find a job,

access to young and welleducated personnel,

the organisation of a national contest in collaboration with entrepreneurs (on the model of business-case competitions organised by the world’s best universities), where groups of students from different majors would solve a case study aimed at the creation of innovative products or services. The students’ presentations would then be evaluated by a professional jury composed, chiefly, of entrepreneurs, financiers, and engineers. The prize would include an opportunity to complete an internship/be employed in a company,

offering a “design voucher” -a tool that would motivate both sectors to establish longlasting cooperation in a comprehensive manner. A subsidy paid out in a several-stagelong process, with the involvement of both parties, i.e. the manufacturer and the creative sector (industrial design), and the cooperation would include at least the following stages: 1.

87 88

We contacted students from the University of Technology who learnt how to manage projects and the design process. Such people can be a kind of mediator between the engineer, constructor, producer, technologist and the designer. So there’s definitely a lot to be done at the level of teaching, as now everything is based on cooperation, good cooperation, while all teaching programmes are far removed from this, and they’re lacking in discipline, conversation skills, and good cooperation.

the selection of an SMP and of a designer,

Wu W. (2005) – op. cit. Walewska D. (2012). Sto pomysłów na biznes miesięcznie, Rzeczpospolita, 11 June, p. B.10. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

design audit,

counselling that would enable designing particular solutions, feasible to be implemented in the SMP,

a design-production grant,

implementation and advisory support at the stage of transferring applied arts to the SMP (design coaching).

Such support can be given to an SMP within public de minimis support. •

The organisation of meetings with the leaders of innovative businesses, who would present their papers, and share their experiences in the development of innovative businesses.

Educational tools refer to the provision of access to knowledge, the organisation of courses, training courses, classes facilitating the development of innovative attitudes, and interdisciplinary actions. The implementation of these tools is easier and cheaper than that of the remaining tools. The suggested educational tools include •

The organisation of training courses for entrepreneurs and managers as key persons in the development of an organisation, to present management methods increasing innovativeness89,

•

funding/co-funding a publication(available, e.g. on the Internet) depicting the case studies of creative-sector companies which have achieved success. Such examples would serve as an inspiration for the young and comprise a benchmark for subsequent projects.

Incubation (start-up), a production chain By all means, it appears impossible to suggest one tool for the incubation stimulation and the effective creation of production chains in creative sectors. The prospective tools should facilitate the establishment and further development of both enterprises and other organisational forms, and should include • tools stimulating the establishment of new entities in the creative sector, • tools facilitating their further development, • tools facilitating the establishment and operation of institutions supporting creative industries. We should state clearly that the possible direction for the development of a creative companies’ support system should encourage then to take up risky endeavours and take into consideration the risk of failure, necessary in this kind of activity. It appears that the creation of several mutually-complementary services based on the creative incubator would be an

Mollick E. (2011). People and process, suits and innovators: The role of individuals in firm performance, Social Science Research Network, http://ssrn.com/abstract=1630546 Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

efficient tool. These services would include: •

an investment fund financed within the framework of the JEREMIE or JESSICA community initiatives,

•

a group of experts cooperating with the incubator, and supporting start-up entities at the stage of a seed in return for remuneration from shares,

•

the creation of a one-stop service package aimed at entrepreneurial people, including an option to register an enterprise, and obtain counsel and access to subsidies.

•

the introduction of a business environment institution to the incubator, especiallyaccredited entities within the framework of the PARP National System of Services and private institutions (especially banks, insurance companies, leasing companies, and high-risk funds),

•

the introduction of stringent requirements connected with obtaining support, which will be inversely proportionate to the selected indices connected with the assessment of the creative sector entity’s situations, including the age of the entity, the number of employees, the number of customers, the number of projects implemented, turnover level, etc.

Therefore, it appears justified to develop such solutions that would enable the effective expenditures There may be a person who says, you know, I only want it to look pretty, or there’s a person who has a somewhat deeper understanding of design and only through this understanding and some kind of an awareness, a true, multi-dimensional and close cooperation is established. Truly worthwhile designs can only be born of cooperation. Cooperation at every stage, at the stage of creating the design assumptions, setting goals and tasks, and later a truly-shared analysis of various ideas and many different concepts. Now, when at any stage of product implementation the cooperation is there, when you cooperate with constructors, technologists... but at every stage the designer is present and active in the creation until the very end, until the moment when the item is to be photographed, when a campaign is prepared around it, sometimes when you need to show your face [...] if that’s so, the cooperation is perfect and it brings, I believe, the greatest chance of success.

public

funds, and which would force the entity receiving the funds to focus on the efficiency and efficacy of undertaken

actions.

Needless to say, the basic condition

for

the

development of such a system is the development

of efficiency-assessment criteria, differentiated with regard to particular industries in the creative sector. 1.

Here we should highlight that all supervisory activities should be also aimed, to a

greater extend, at efficiency, rather than at the formalities connected with the proper settling Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

of funds. It is worth noting that public funds often impose on the receiving entity restrictions connected with their low flexibility. The receiver of a subsidy has to settle, within the time limit provided in the agreement, and present all the documents, stipulated in the agreement, confirming the timeliness and correctness of the expenditures borne, and their conformity with regard to budget items and the agreement. Such restrictions force entities that receive support to concentrate not on the objective of the implemented tasks, but on the correctness of settling, which means that often, during the implementation of the project, one forgets about its actual effects, and concentrates on the correctness of accounting for the received money. .

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

4. The results of European and global research 4.1. Identified instruments for the support of creative industries 2.

The objective of research conducted at the global level was to identify the examples of

actions, initiatives, and instruments implemented in Europe and the whole world, which were designed to support creative entrepreneurship. Based on the conducted overview, the examples of the most interesting practices, which can comprise an important source of inspiration to suggest pilot actions to be implemented in Warsaw, were selected. 3.

The identified instruments are being implemented, in the great majority of cases, at

the local level. Such an approach is in line with the specificity of the creative sector entities whose operations are deeply rooted in their local surroundings. In a few cases the discussed support instruments are part of a broader development strategy for a city or a region, as Local Governments more often see the potential of their support in the culture and creative industries. The local dimension is not without significance from the co-author’s development perspective – it is the proximity of partners which often serves as an incentive to cooperation. This cooperation, on the other hand, is yet another feature characteristic of creative-sector entities – especially due to the specificity of the marketed goods, whose life cycle is fairly small. Thus it is necessary to continually offer new packages, and they are much easier to generate mutually. The cooperation is often established informally for the purposes of a particular undertaking or project, and comprises one of the distinguishing features of creative industries in comparison to other industries. Readiness to cooperate and the understanding of the benefits stemming from it are also important to the creation of clustering potential in the area of creative industries. 4.

The forms of support presented below are aimed at the creative sector and include

very diverse tools – both due to the offered-support form and the stage of enterprise development at which support is most effective. The subsequent part of this report analyses these instruments and suggests a typology of support forms addressed to artists and creative entrepreneurs. Next, there are four examples of specific initiatives implemented in the world in the form of mini-studies, presenting the implemented actions in a more detailed fashion.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

DEPARTURE, an agency for the creative industries

Vienna, Austria

http://www.departure.at/ 5.

The DEPARTURE agency was established by local authorities (the city of Vienna) in

2003. Its task is to promote entrepreneurship and offer support for the creative sector companies. 6.

DEPARTURE offers several funding programmes aimed at entrepreneurs and people

planning to set up a business, and also supports and promotes the most promising artists in industries like fashion design, music, audiovisual arts, multimedia, industrial design, publishing design, and architecture. Currently, there are four different funding programmes available Departure Classic (for already-established planning to implement innovations) Departure Pioneer (for people planning to set up a business), Departure Experts (for self-employed people seeking counselling support), and Departure Focus (for companies planning to implement innovations which fit the thematic range set annually by the agency). You can use counselling services outside the funding programmes, as the agency maintains constant cooperation with a team of experts in the fields of searching for funding for companies, tax law, marketing, and product development. Furthermore, the agency is involved in the organisation of various events, such as festivals and fairs, which, on the one hand, enable the establishment of contacts in a given industry, and, on the other, promote Vienna as a city favouring creative industries ➾ funding access ➾ counselling services ➾ promotion

CultuurInvest

Flanders, Belgium

http://www.pmv.eu/en/services/cultuurinvest One of the sub-funds of PMV, a private investment fund, which specialises in investing in undertakings in the field of creative industries. It offers the possibility of the provision of capital to an undertaking which is characterised by substantial market potential –in the form of

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

a subordinated loan or in exchange for shares in the company. Thus, the instrument on offer is neither a grant nor a subsidy – it rather resembles the functioning of high-risk funds, which offer support for innovative and developing projects also in other sectors. One can submit an application via the website of the fund. All the data transferred by an entrepreneur are treated as confidential. If the application meets all the formal requirements, the candidate is then invited for an interview. The meeting enables the handing over of information on the fund’s package and establish if the proposed conditions suit the entrepreneur. It is also an opportunity to conduct a preliminary reconnaissance, as long as the entrepreneur is realistic regarding his or her development plans, and depending on the level of detail which they were drawn. At this stage, each of the parties has to express interest in further cooperation. In the case of mutual consent, a more detailed analysis of the business plan is conducted, including the assessment of the venture’s economic potential. Next, the detailed terms of investment are set. The final decision is made by the fund’s Investment Committee. Should the decision turn out positive, the funds are also responsible for conducting the whole process on the organisational side, including attending to legal, administrative and financial formalities. The fund’s objective is also to accompany the entrepreneur in the most important actions and offer support (counselling) focussed on the implementation of the established objectives. The fund has been operating since 2006 and since then has already invested in 53 enterprises. ➾ funding access

Flanders DC

Flanders, Belgium

http://www.flandersdc.be This organisation aims at supporting creative entrepreneurship. It conducts research on creative businesses, innovativeness, and entrepreneurship. Based on their results, it develops tools for the sector’s support. The Flanders DC’s support package includes the lease of conference rooms and meetings halls in a “creativity lab,” an option to use co-working space “Bar d'Office,” and free on-line services (creativity-level test and team-potential scan). Flanders DC also maintains up-to-date bases of job offers in the sector and of companies providing services for other entrepreneurs.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Furthermore, the package includes: Workshop sessions concerning creative entrepreneurship. They are aimed at people who are planning to set up a business, and organised every month in different regions of Flanders (they encompass such topics as, how to translate an initial idea into a specific product, building networks of cooperation, creating a communication strategy, product appraisal, and intellectual-property protection). The I-Creative internship programme is aimed at the alumni of art schools. Within the frameworks of the programme, it is possible to complete a 6-month-long internship in a company or an organisation in the creative sector in Europe. Flanders DC is responsible for all formal matters connected with the organisation of internships, supports interns in establishing contacts with employers, and pays out scholarship (using the funds of the Leonardo da Vinci programme). The Plato Creative X-Change programme is aimed at people who have already started their businesses in the creative sector. It offers counselling and mentoring by the representatives of larger creative enterprises for those who are interested in further development of their companies. Cyclic meetings of organisations working for the benefit of the creative sector “Overleg Creatieve Industrieën.” during the meetings have an opportunity to share information and experiences, but also to work out common stances on desirable action and directions for public policies focused on the sectors ➾ space ➾ incubation ➾ training courses ➾ education

The Tallinn Creative Incubator

Tallinn, Estonia

http://www.esa.ee/eng/business-incubators The Tallinn Creative Incubator is one of three incubators run by the Business Support and Credit Management Foundation. The other two incubators also have their specialisations – one directs its services mainly to SMEs in northern Tallinn; the other, however, is oriented at Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

innovations based on high-tech. The incubator’s operations are funded mainly from the city budget. The Creative Incubator, opened in 2009, offers the possibility of using office space and the series of counselling and training services. The incubator’s support is chargeable, but the services are subsidised up to 75%. Start-up entrepreneurs have an opportunity to establish contacts with other people who are also starting their businesses in the creative industries field. In their activities, they are supported by counsellors and mentors, and also can participate in workshops and seminars organised by the incubator. Among other popular services there are all events during which the entrepreneurs work out particular solutions while working in groups. What‘s more, the incubator has on offer an option to use its conference halls and meetings rooms for the purposes of a given company’s operations.

➾ networking ➾ incubation ➾ training courses ➾ promotion

The Viljandi Creative Incubators Foundation

Viljandi, Estonia

http://www.loomeinkubaator.ee/eng The foundation runs a business incubator specialising in supporting artists and entrepreneurs whose products are based on metal or textiles. The incubator offers an opportunity to locate the company in the foundation’s registered office or to use the so-called virtual programme, in the framework of which the company is run outside the incubator’s registered office, but benefits from other, mainly counselling, services. Artists can benefit from the incubator’s support for a period of two years. The incubator’s package includes access to office appliances, conference halls, workshop space, and laboratories equipped with an eye to metalwork and textile handicrafts (e.g. lathes, milling machines, a smith’s workshop, equipment for chemical treatment of metal, looms, sewing and knitting machines, laundry rooms and machines for cloth dyeing). The incubator maintains close cooperation with institutions of higher education (one of the Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

fundation’s founders is the University of Tartu). Owing to this, the incubator’s equipment is also available to the university’s staff and students – the machines are used for the purposes of practical classes and research projects in the fields of technology and design. The incubator benefits from the ERDF funds ➾ space ➾ training courses ➾ networking ➾ incubation ➾ education

Creative Industries Finland

Finland

http://www.creativeindustries.fi The Creative Industries Finland centre was established in 2008,when it was given the function of the coordinator of the Development Programme for Business Growth and the Internationalisation of Creative Industries. Its operations are coordinated by the Aalto University School of Economics in cooperation with the Sibelius Academy, the Cities of Helsinki, Tampere, and Seinäjoki, as well as the Jyväskylä Regional Development Company JYKES Ltd. CIF provides information and services for creative industry developers, policy-makers, and keyinterest groups. It prepares publications which present statistical data and commentaries bringing closer the subject matter of the cultural and creative industries, and by this is also collects data necessary for the diagnosis of the needs and forecast of trends in these fields. It also organises cyclical events like seminars and workshops projecting the participation of international partners. CIF also collects and publishes information relevant from the point of view of running a creative company. On the CIF website there is information on, i.a., support programmes for the creative sector, available funding instruments, and important strategic documents, and also on institutions and initiatives for the development of the creative sector (also in other Nordic countries)

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

➾ promotion ➾ analyses, diagnoses

LUKE

Tampere, Finland

http://www.luovatampere.fi LUKE - The Creative Industries Development Programme aims at the development of the creative sector, implemented from 2006 to 2011, in the Tampere region in Finland. The programme was financed from the city and Government funds for regional programmes, and also co-funded by the EU. Currently, some actions focussed on supporting the creative sector are still being continued. The main objective of the programme was to support the establishment and development of creative enterprises, support networking (within the sector’s framework and also with other industries), as well as to attract attention, which would translate into the establishment of enterprises. The programme was an answer to the observed growth in the creative sector’s potential, with a simultaneous decrease in the importance of the traditional economy in the region. The support included such activities as training courses, counselling, entrepreneurship coaching, and networking. Within the framework of the programme, there was also created an agency which recruited and supervised entrepreneurs which had received support. Currently it also offers office, workshop, and conference space for artists and entrepreneurs. ➾ space ➾ training courses ➾ counselling services ➾ networking

Maisons de Mode

Lille and Roubaix, France

http://www.maisonsdemode.com This is an incubator created specifically for young fashion designers within the framework of cooperation between the cities of Lille and Roubaix with an eye to search for and support Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

young designers’ talents. It offers workshop and boutique space, and also a selection of services for start-up creative entrepreneurs, all available in two different locations. Candidates interested in benefitting from support have to go through a selection process, under which their ideas are scrutinised by experienced designers and people working in clothing industry. The support is aimed at two groups: •

designers who have already created several author’s collections and are interesting in creating their own brands using professional counselling,

•

designers creating their first collections, who, within the framework of the incubator, can use one of the seven mini-workshops, seminars, and training courses, and also a joint distribution channel (a boutique located on the incubator’s premises).

The support programme lasts for two years and is open to designers from the whole world. At the end of the incubation period, the entrepreneur can open his or her own boutique by using the option of renting retail space in the incubator. ➾ space ➾ training courses ➾ counselling service ➾ promotion

Plaine Images

Tourcoing, France

www.plaine-images.fr A building complex developed with an eye to providing the indispensable infrastructure for the development of cultural and creative industries, which base their operations mostly on visual arts such as video-games development, video production, animation (including computer animation), and multimedia. Plaine Images was established in the old industrial area of Tourcoing, a city located in the Lille conurbation. Within the framework of the available infrastructure, artists and entrepreneurs can use co-working space (Imaginarium, available free of charge), and also offices for rent. There were also prepared specialist infrastructure and rooms, including, e.g. recording studios. Plaine Images was established with an eye to stimulating cooperation between companies, training institutions, and individual artists and researchers, who, gathered in common space, Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

would have an opportunity to share experiences, conduct joint experiments, and develop innovative solutions. Plaine Images also offers an incubation programme for start-up creative entrepreneurs. Aside from work space, it also offers counselling and instructional support. What‘s more, the contacts between entities operating on the Plaine Images’ premises are further strengthened by the operation of an entrepreneurs’ club and the organisation of thematic breakfasts and conferences. Furthermore, as a part of animating social life, there was created a football team, this activity also entailing the organisation of concerts, exhibitions, or thematic soirées. ➾ space ➾ training courses ➾ counselling services ➾ incubation ➾ networking

Startwest Investor

Nantes, France

http://www.start-west.com The objective of Startwest Investor is to promote investments in the creative sector. A business event has been held to allow the representatives of the creative sector (both startups and longer-operating enterprises) to present their ideas to potential investors – both from France, and from other European countries. It was held as part of an annual event linking innovative enterprises looking for funding to kick-start their operations or develop their businesses with potential sources of funding, organised by the financial cluster located in Nantes, in partnership with city authorities and chambers of commerce and industry. What made this event special was the fact that up to that day, it was of a national character, and now it has achieved European reach. The endeavours that are to be presented to the investors are first selected from the application filed during an open call for proposals. Selected artists and entrepreneurs benefit from training courses and counselling which are to prepare them for the best possible presentation of their ideas at the aforementioned meeting and during subsequent occasions. 7.

Furthermore, this event is also a perfect opportunity to establish contacts both with

potential investors and with other representatives of the creative sector. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

➾ funding access ➾ training courses ➾ counselling services ➾ networking

Bureau Broedplaatsen

Amsterdam, the Netherlands

http://bureaubroedplaatsen.amsterdam.nl This organisation created by the City of Amsterdam operates to acquire and maintain affordable work and residential space for artists and entrepreneurs in the creative industry in Amsterdam and its vicinity. Some parts of the space have already been commissioned and are being used by the target group. More are being created, and concerning the third area/location, a feasibility study is being conducted. What’s more, the organisation encourages other entities to create such spaces by cooperating with, among others, thematic organisations, Local-Government units, developers, real-estate agencies, and investors. ➾ space

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Westergasfabriek

Amsterdam, the Netherlands

www.westergasfabriek.nl This “cultural park” which is partly an office block using the redeveloped buildings of an old gasworks, offers rooms for creative sector companies and cultural organisations and institutions. On the premises of the structure there are also services and sales premises. The complex also offers the option to rent halls and outside space for the purposes of exhibitions, concerts, conferences, meetings, etc. ➾ space

The Creative Factory

Rotterdam, the Netherlands

www.creativefactory.nl The Creative Factory offers space for start-ups and creative-sector companies. It is located in a redeveloped post-industrial area. Aside from office space, The Creative Factory also offers work spaces, such as specialist workshops and a recording studio. It is also a place for meetings, conferences, and exhibitions. Apart from making available office space at affordable prices, The Creative Factory aims at supporting the creation and development of creative enterprises, and also at stimulating support between the enterprises within the sector, especially by concentrating them in one location (a potential cluster) and meetings focussed on their networking – also with other industries. Residents have the option to use the knowledge, experience, and contact networks of the project’s partners. They are also presented with the opportunity to create their profiles on the Creative Factory website. The support granted is personalised and adjusted to the most extent to the needs of a given individual/enterprise. The Creative Factory is a public-private partnership. The risks connected with its management are borne by a private entity. The area is rented from the city, which invested in the redevelopment of the post-industrial area. The public sector, as well as educational enterprises and institutions such as the City of Rotterdam, Rabobank, KPMG, HOPE Erasmus University, Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

and Technical University of Delft, are all involved in this partnership. ➾ space ➾ training courses ➾ counselling services

➾ networking

Creative Dublin Alliance

Dublin, Ireland

• www.creativedublinalliance.ie The Creative Dublin Alliance is a collaborative leadership network across Dublin’s Local Government, business, and academia leaders, where the purpose is to develop, manage and promote Dublin’s international reputation as a city where innovation and creativity thrive. The Alliance is chaired by the City Manager and the secretariat is provided by the Economic Development Unit of Dublin City Council.

Below please find an overview of selected projects implemented by the Creative Dublin Alliance

PIVOT Dublin PIVOT Dublin is a design promotion project initiated in 2009 by Dublin City Council. Born out of Dublin's bid to be designated World Design Capital in 2014 (the title went to Cape Town), PIVOT Dublin provides a platform to celebrate design's positive impact on social, cultural and economic life. The project has its website, which presents the city itself, as well as the history and development of design in Ireland, good practices and organisations, educators and higher-education institutions operating in this field. In addition, it provides information on upcoming events. Next to its promotional objectives, the project connects various operators across the design community and raises the potential of contacts, built on its way towards the World Design Capital. This is achieved both by the Internet platform and convened meetings. ➾ promotion ➾ networking Innovation Dublin Innovation Dublin is a project launched in 2009. As well as serving as a platform for networking, learning from high-profile professionals, and exchanging views, it provides the presentation and promotional activities for creative endeavours across urban scientists, businesspersons, and artists. It is part of the Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

European programme, funded from Interreg funds, called The Open Innovation Project, in which Dublin is partnering with eight other cities. â&#x17E;ž promotion â&#x17E;ž networking

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Ireland

Design Innovation Voucher Pilot Initiative â&#x20AC;˘ https://innovationvouchers.ie/design/default.aspx

The Design Innovation Voucher is a pilot initiative launched by the Irish Government, and implemented as part of its 2012 Employment Programme. The Programme focusses on encouraging small enterprises based in Ireland to use design. The Programme is to promote innovation across small businesses, and create a cultural shift in their approach to innovation, especially when it comes to using design as an innovation tool. Moreover, it is designed to serve as a stimulus for cooperation between expert representatives of State-owned universities or research institutes and small companies.

The Voucher gives such enterprises access to know-how. It can help to create and evaluate design solutions, which could leverage value added and the company's exports. The Initiative is expected to induce the transfer of design and branding knowledge, in its broad sense, to the company. This can involve new products and/or services as well as the modification of the existing range. For instance, the project can serve to develop a prototype design or carry out specialist individualised training. Typical areas of interest include industrial design, ergonomics, user-interface design, fashion design, consumer goods, and digital media.

Creative Andrejsala

Riga, Latvia

â&#x20AC;˘ www.creativeandrejsala.lv

Launched in early 2010 by the Investment and Development agency of Latvia to support the establishment and development of new competitive businesses in Latvia who are operating in the field of the creative industry, this business incubator provides the necessary environment for their business and consultation services. Support is available for limited companies operating on the market for no longer than two years from its registration date. All entrepreneurs interested in taking advantage of the

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

incubator are obliged to provide proof of being free from any tax debts and – naturally – to conform to the definition of the creative industry, as provided by the incubator. The supported services include secretarial services, accounting advisory services, external funding acquisition assistance, legal aid, networking support, recruitment assistance, and sales & marketing consultation. These services are chargeable but newly-established companies are offered generous discounts (even up to 85%). The incubator forefathers assume that by 2014 a total of at least 100 will have received support. About 50 businesses have already enjoyed assistance, and some of them have managed to experience sufficient growth to leave the incubator, while others are running ebusinesses and do not need to use the incubator office space. ➾ space ➾ networking ➾ incubation

KIK – Creative Industry Association

Lithuania

• http://kikas.lt The Association has been in operation since 2008. At the moment it has 60 members, including higher schools of the arts, NGO’s, enterprises, associations of artists and creative businesspersons, and artistes. Its individual members operate in highly-diverse environments, such as the advertising, industrial design, publishing, music, and film industries. The purpose behind the Association is to consolidate the creative community and to promote this industry country-wide. It is also to be the voice of all creative minds and businesspersons operating in creative industries in the public debate on the development of this sector. Its activities are to facilitate the process of compiling information on the leading trends in this area, defining standards in education targeted at the advancement of the creative industry and setting up international collaborative projects. Also, the Association is dedicated to supporting its members, and creators in particular, in commercialising their works. So far, the Association's highlight has been the development of the national programme entitled “Cultural and Creative Industries in Lithuania,” channelled towards the modernisation of the education system for artistic schools, while taking into consideration integratededucation needs, and incorporating training in entrepreneurship. The programme has received

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

EUR 2.7 million worth financial support from the Lithuanian Ministry of Science and Education. ➾ networking ➾ promotion ➾ education

Start a dialogue

Bremen, Germany

• http://www.wfb-bremen.de/de/wfb-beraterprofile Launched in 2008 as a pilot initiative by the WFB (Wirtschaftsförderung Bremen) development agency, this tool is responsible for creating links between “traditional” industries and the creative sector. The project established a think tank, bringing together representatives of the creative sector (operating mainly in industrial design, product development, communications, graphics, etc.) with long professional experience. The next step was for a beneficiary from a “traditional” industry, assisted by a member of the think tank, to prepare a support application. The think tank assessed the standing of a given company and devised recommendations regarding necessary actions to be taken, particularly in respect of the existing and preferable sales techniques, including marketing policy, product innovation levels, communications, etc. Seven such companies took part in the pilot, including one operating in fish processing (packaging-design assistance) and a coffee producer (marketing-strategy development). ➾ cooperation assistance

DORTMUND.KREATIV

Dortmund, Germany

• http://www.kreativwirtschaft-dortmund.de Dortmund.Kreativ. organises support for the creative industries, which is provided and funded solely by the City of Dortmund (the Economic Development Agency and the Office for Cultural Affairs). The underlying objective behind the initiative was to create favourable conditions for the creative industries to flourish in the city in terms of sector growth, and to ensure an atmosphere which would encourage creators to stay in Dortmund. The range of services available was wide. It included assistance during the establishment and development of creative businesses (training, consulting services, business networking); the initiation and expansion of new and existing networks; the organisation of networking Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

meetings and thematic seminars; and also the creation of and providing access to creative working space and cooperation, often in refurbished post-industrial buildings located both in the city centre and on the outskirts. The delivery of support was conditional on the prior screening of the creative industries in Dortmund and developing an action plan for this sector. ➾ ➾ ➾ ➾ ➾

space access to funds training consultancy services networking

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Karostar

Hamburg, Germany

• www.karostar.de The Karostar Music House was created with small music-oriented businesses and creators in mind. It was formed in the shells of post-industrial buildings, formerly occupied by slaughterhouses. Its primary function is that of a competitive working-space provider (houses c.a. 33 companies). The occupants also have access to shared facilities (kitchen, conference room), which helps them network and cooperate with fellow and related professionals. The creative minds can use three studios, well-suited to sound recording and mastering. They can use co-working space, too. Its residents include record labels, concert-booking agencies, publishers, and marketing experts and agencies. Each of them can rent the offices for five years. The ground level houses a sales floor. The Karostar Music House was co-funded from the ERDF. •

space

Creative.Quarters

The Ruhr Valley, Germany

• http://www.e-c-c-e.de/en/activities/currentprojects/verortung/kreativquartiere-ruhr Creative.Quarters is a project to set up creative districts, or centres of creative ideas standing out from the urban landscape. It is designed to foster the balanced and sustainable growth of the Ruhr valley and the unlocking of the creative potential of the region, as well as to improve the quality of life, since creative districts are perceived as attractive locations for settlement. Creative areas frequently emerge in post-industrial districts or city centres, thus contributing to their re-activation and growth. The establishment of the individual districts engages local authorities, bodies responsible for zoning and the development of culture and business, but also businesspersons, with particular focus on the creative industries. Seven creative districts have been set up so far and two more are currently at the design stage. •

space

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Creative HQ

Wellington, New Zealand

• www.creativehq.co.nz This business incubator is about supporting the creative industries and innovative businesses. It delivers comprehensive support to early-stage entrepreneurs. The capital for HQ operations has been raised from the funds of the Local Government, the Regional Development Agency, Wellington and the New Zealand Trade and Enterprise, a Government Agency. At first, each applicant goes through an induction programme. It involves weekly meetings with his/her dedicated Business Strategist, who is responsible for managing the business idea and providing assistance in making the most of the resources and contacts the incubator and its partners provide. First up will be developing the first action plan which will be assessed and challenged by a Creative HQ panel. Each quarter the participant is reviewed on his/her progress and financials against the agreed activities and milestones. Throughout this stage experts are available on a one-on-one basis when needed, to align the potential to achieve the best opportunities. Start-ups can take part in workshops and training sessions such as company valuation, investment decision-making, sales and going global. All Creative HQ service recipients can join CEO Forum meetings, held on a regular basis, to get together and share the successes, experiences and learning of the entrepreneurial community. The initiative also offers assistance in raising the capital necessary for building a company. It has launched its angel investor network, Angel HQ, to provide seed capital in exchange for equity in the supported companies – usually 5%. ➾ business incubation ➾ training ➾ access to funds

Creative Industries Incubator

Óbidos, Portugal

• http://www.pt-obidos.com Launched under the Technology Park, Obidos, this business incubator delivers support for the creative industries. Office space aside, incubator clients are provided with access to meeting, conference and rest & leisure floors. The range of available services includes front-desk and secretarial office resources. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

In addition to office space, the Incubator offers assistance services and training to leverage business development. These include business planning, revision and supervision, help in tapping into financial resources, promotional and marketing activities for the resident companies, support with regulatory compliance, including intellectual property management, and financial advisory services. ➾ business incubation ➾ training ➾ consultancy services

LX Factory

Lisbon, Portugal

• http://www.lxfactory.com LX Factory is a fine example of the successful revitalisation of post-industrial areas located in the city and opening it up to creators and entrepreneurs from the creative industries. Next to its office and workshop spaces, the venue has a stage, which plays host to a wide range of cultural, promotional, and business events, as well as exhibitions, conferences, etc. ➾ space

Future in Textiles

Romania

• http://www.fit21.ro This is an association of creative souls and entrepreneurs operating in the textile industry. It is committed to supporting and promoting the Romanian textile sector by way of organising fairs, shows, exhibitions and international events, combined with publishing activities involving editorial work and distribution. The Future in Textiles stands behind the Romanian edition of the Fashion Week, and it has recently entered into cooperation with the Ministry of the Economy to implement a programme for financial support to its members who participate in international fairs. ➾ promotion

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

North California Land Trust/Noodle Factory

Berkeley, USA

• www.nclt.org Established in 1973, the NCLT is a trust committed to making homes and community facilities permanently affordable to the disadvantaged, who would otherwise not be able to cover the cost of flat rental or purchase at normal market prices. Recently, the Trust has expanded its offer with artist support. The Noodle Factory Performing Arts Centre is a renovated performance space, comprising 11 apartment-and-studio facilities, 2 rehearsal rooms (for performance and concert practice), and a concert hall suitable for various artistic events. The investment was financed in part from private funds (individual donor donations), and in part with the use of loans from the Northern California Community Loan Fund and the Federal Home Loan Bank. Each purchase of an apartment is subject to a partial subsidy and the owner has the right to sell it on similar conditions, as the subsidy is transferred to the subsequent owner of the property.

➾ space

The Arts Council’s Arts Business Program

New Orleans, USA

• http://www.artscouncilofneworleans.org This programme focusses on area artists as well as artistic organisations and businesses, whether associated with the visual arts, stage performance, music, film, or literature, regardless of whether it is for-profit or non-profit. The available assistance includes training in launching and developing your business activity, and consultations on a wide range of functions, such as business plan verification, venture organisation support, networking, online profiling and marketing campaigns. Its essential functionality is aid in the identification of potential funding. In addition, the Programme provides access to legal assistance, including copyrights, and is committed to serving as a platform for the exchange of initiatives and bringing the community of its beneficiaries together. The project was initiated in 1991 as a mission of the Arts Council of New Orleans, a private, non-profit organisation designated as the City’s official arts agency. In 1999, the Programme was recognised as a national model when the National Business Incubation Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Association named it “Business Incubator of the Year.” ➾ business incubation ➾ training ➾ consultancy services

The Digital Media Centre

Barnsley, UK

• The Digital Media Centre is a vibrant, affordable office and meeting environment. Launched by the Barnsley Metropolitan Borough Council, the project is backed up by several other organisations, such as Oxford Innovation, the UK's leading operator of Business and Innovation Centres. Its landmark building is designed to support the success and development of creative, digital and media businesses. This purpose-built centre caters for the specific needs of the abovementioned professionals, and offers solutions for businesses at all stages (freelancers, microcompanies and larger, more established firms). Such a policy is further confirmed in its services, which range from a virtual office address to regular hot-desking space, to fullyserviced offices. At the DMC, businesses not only enjoy a vibrant, creative environment, but can also access professional support to help with running and growing a business. The Centre's Project and Incubation Director provides hands-on business support and access to a network of external experts, programmes and services. With regular networking opportunities, informal seminars and social events, the DMC introduces its clients to a ready-made community of likeminded professionals. ➾ ➾ ➾ ➾

The Civic

space business incubation consultancy services networking

Barnsley, UK

• www.barnsleycivic.co.uk Situated in a historic building in Barnsley town centre, the Civic is a cultural and creative hub. The site of the Civic has long been used as a public hall for the people of Barnsley. It not only Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

hosts various performances and exhibitions but also provides studio, workshop and office spaces, which are home to local creative organisations. ➾ space

The Creative Industries Network for Innovation

Bristol, UK

(CIiNet) • www.swscreen.co.uk CIiNet serves as a tool for supporting the process of transforming innovative ideas into new, marketable products, with particular attention to its development milestones. This utilises various projects and programmes to overcome barriers arising on various stages of product implementation. The beneficiaries of CliNet's services include mainly the creative industries with a focus on digital technologies. CliNet is an initiative under the Solutions for Business Programme, designed to support small enterprises operating in five high-growth sectors in the south-west of England. It mobilises funds from the Regional Development Agency, its partner institutions and EU resources (European Regional Development Fund).

➾ ➾ ➾ ➾ ➾

First Thursday (creative breakfasts)

training consultancy services space networking research support

Dundee, UK

• www.creativedundee.com Creative Dundee is about regular get-togethers organised by Interactive Tayside, an agency resulting from a joint effort of public-sector institutions (e.g. the Government of Scotland, Dundee City Council) and schools of higher education (University of Dundee, Perth College, Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Angus College), to connect and promote the digital media industries in the Tayside area. Events are organised to connect like-minded individuals by providing networking opportunities with the potential for building collaborations. Meetings are held on the first Thursday of each month between 8:30 and 10:00. Usually, there is no clear agenda agreed, and the gatherings create a casual atmosphere, which encourages their participants to share ideas on topics of their choice within a small community. Interactive Tayside's regular newsletter for artists and digital-media sector is distributed by email every two weeks and covers highlights of events, job offers, and project opportunities. ➾ networking

CIDA – Cultural Industries Development Agency

London, UK

• www.cida.co.uk CIDA is a public-funded agency. Its funders include the authorities of several London Boroughs, the European Union ESF and the European Regional Development Fund. CIDA works to support the creative industries (consulting in entrepreneurship, assistance in strategic planning, promotion and marketing, external funding, collaboration), to promote cultural diversity and the creative industries and culture branches, to gather information and provide individuals and institutions, engaged in developing public policies for the creative sectors, with the necessary data. Membership of the organisation is open especially to artists, persons committed to launching their own creative business, and already-existing such companies or culture establishments. CIDA members enjoy the opportunity of building contacts with other creative professionals (via networking events and training workshops), and access to guidance on business practice to provide sustainable services and ensure growth. ➾ networking ➾ training ➾ promotion

Incredibol! - Bologna's Creative Innovation

Bologna, Italy

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

• www.incredibol.net Promoted by the Municipality of Bologna (and its partners), the Incredibol! Project is designed to support the creative professions in the city and its vicinity. It provides assistance to young creative professionals operating in the cultural field, in particular during their start-up phase, to help develop their ideas into businesses. Incredibol! is a broad network of partners, both public and private, that are already working, individually, in Bologna and its region. The project was launched in 2010. The range of available services has been expanded. At the moment, the tools for transforming an idea into business are as follows – office space, grants, training and consulting services, business-management support, and promotion. Initiatives to receive support are selected by way of tender procedures. ➾ ➾ ➾ ➾

H-Farm

business incubation access to funds training consultancy services

Treviso, Italy

• http://www.h-farmventures.com H-Farm is a Venture Incubator (a hybrid model that combines the functions of a business incubator and seed seed/venture capital), whose mission is to accelerate the development of Internet start-ups. It grants the finance necessary for the early-stage activities, and provides consultancy services. As an incubator, it delivers an inspiring workplace, centralised general administration, a press office, and human resources, as well as legal and financial advisory services. H-Farm partners support portfolio start-ups throughout their incubation by assisting them in defining commercial strategies, business plans, and exit strategies. ➾ access to funds ➾ business incubation ➾ consultancy services

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

4.2. A

summary of the identified instruments - typology

An overview of foreign-support instruments available at the European and global levels indicates a wide range of assistance services provided by various institutions to the creative industries. Despite the significant diversification of these tools, it is possible to distinguish the following support areas •

workspace for artists and businessmen,

•

networking,

•

training and consulting services,

•

funds,

•

evaluation,

•

promotion.

Workspace for artists and businessmen generally includes office space (often within businessincubator facilities), studio and workshop space, such as an atelier with professional equipment (e.g. painting studios, recording studios, or computer rooms with specialist software), as well as co-working space, conference rooms and meeting space. Frequently, it is available under the incubation framework, such as in the Viljandi incubator, Estonia. Another solution, found in the USA, is residential and workshop space (e.g. Noodle Factory), provided for local artists. The most comprehensive strategy in this field involves the establishment of the so-called Creative Districts. They generally come into being as a result of the revitalisation of industrial areas located on urban grounds, and the produced benefits are twofold. On the one hand, the representatives of the creative industries are given access to meeting and workspaces, and on the other, dilapidated venues are brought back to life and returned to the city. They are also given new functions, such as hosting artistic and cultural events, exhibitions and conferences. This approach is embodied by Creative Quarters, Germany. Networking includes tools designed to facilitate cooperation between the agents operating in the culture and creative sectors. These include various measures devised to build new business relationships, both within and across industries (with other participants of the value chain and with so-called traditional industries) and generate business opportunities between the creative Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

industries and potential capital providers. An interesting concept, introduced in the last domain, has been represented by Startwest, France. The idea behind it is to pre-organise meetings between prospective venture-capital investors and hand-picked creative enterprises, well trained and coached to neatly present their businesses, for which they are seeking funding. Activities targetted at achieving this end focus on arranging meetings, but they also deliver on-line platforms to showcase entities operating in a given field or location, which are aimed at allowing access to specialists with relevant expertise (this solution has been employed by PIVOT Dublin, Ireland); newsletters; staff-exchange programmes and internships, such as the I-Creative programme, which encourages internships in cultural and creative institutions/organisations for graduates of studies associated with the creative industries. Cooperation building is also advanced by the physical concentration of enterprises, which can be seen in incubators and creative districts (e.g. Creative Andrejsala, Latvia). Training and consulting services is a category to encompass instruments developed to achieve the business competence necessary to engage in business activities. This grouping covers various tools addressed to entrepreneurs at various stages of development, from students in creative domains to freelance artists, start-ups, and well-established companies. The available support takes different forms. Frequently, these include traditional training, but more tailored models, such as individual sessions offered, e.g. by H-Farm, Italy, are gaining in popularity. Other schemes that are experiencing growing interest include business coaching and mentoring at various development stages, as provided by the Creative HQ, New Zealand. A worthwhile instrument, delivered by the Tallinn Creative Incubator, Estonia, is group workshops, whose objective is to share and jointly solve problems encountered by their participants on a daily basis. The vast portfolio of forms aside, this set of tools is also characterised by diversification in terms of subject areas addressed. However, what they have in common is creative business activity. The issues put on the table either include typical aspects of business activity, such as the law, finances, accounting, business plan development, and company start-up; or specific problems characteristic of the cultural and creative industries, such as intellectual-property rights protection or marketing strategies for creative products/services. The funds category was aligned with the support for the creative industries which involves access to financial resources. Pecuniary aid can be either non-repayable, in the form of grants, or repayable, as the popular venture funds (H-Farm, Italy) or business angels (Creative HQ, New Zealand). It is not uncommon to see financial assistance, especially if subject to Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

repayment, supplemented with consulting in business operations/growth, which takes into account the development stage of a company when it receives funding. A fund that specialises in investments in creative undertakings can be exemplified by Cultuurinvest, implemented in Flanders, Belgium. For details, please consult mini-studies. Support is also available through research and evaluation studies of the creative industries to develop and introduce public policies. It may not be direct support to benefit specific entities, but it delivers a valuable contribution to the improvement of business opportunities in this area. Such initiatives have been launched by the Cultural Industries Development Agency (CIDA), London, and the Creative Industries Centre, Finland. Supporting the creative industry through promotion usually serves as a supplementary measure to other types of support and involves the organisation of campaigns, festivals, fairs, etc. A popular practice is to create the company/artist's profile on the website run by the incubator or creative district where a given entity is based (e.g. Creative Factory, Rotterdam, the Netherlands). Promotional benefits can also be derived from the participation in industry associations, such as Future in Textiles, Romania.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

4.3.

Case studies

Creative entrepreneurship and cooperation, or how to transfer ideas to the market

Creative HQ

Creative HQ is a business incubator which offers comprehensive support to anyone on their way to establishing a company, as well as start-ups. It was established in 2003 to unlock the economic potential of the Wellington area. Already at that time, creative and innovation-led businesses were being seen by the Wellington authorities as showing considerable potential for boosting the economy. Creative HQ is run by a foundation, established by two public-sector institutions - Grow Wellington, a regional development agency, and New

Grow Wellington and NZTE

Zealand Trade and Enterprise (NZTE), a

Creative HQ operates as a foundation, established by two public-sector institutions. The first is Grow Wellington, a development agency instituted by the local authorities. The second founder is the New Zealand Trade and Enterprise Government agency (NZTE). Both institutions are to engage in supporting entrepreneurship and target their services to startups, well-established companies, and foreign investors alike. Grow Wellington delivers services such as business idea assessment, export business activation, and external fund raising. The NZTE, on the other hand, provides consulting and training services, mediation in establishing international cooperation, and innovative project financing. An interesting initiative, sparked by the NZTE, is Better by Design - a programme to promote and encourage the use of design (both industrial and service architecture) among "traditional" industries, especially on the verge of launching export activity.

Government agency focussed on supporting growth in New Zealand. The incubator is led by a team comprising 10 professionals, including business strategists, knowledge commercialisation, and capital raising. The initiative is based on limited space - it provides open-space rooms, divided by mobile partition walls to create workspaces for groups of several people. Entrepreneurs can also use a shared front desk, a kitchen, and a meeting room.

The incubator provides support for 1-2 years, during which portfolio companies are given the opportunity to acquire knowledge and skills to polish their business idea so that it is ready to enter the market. Participants learn, i.a., how to develop a company development strategy, prepare action plan, source investors, build the company's organisational structure, and supervise its standing. Creative HQ's charges can take advantage of the available office space to rent a desk, or work in another place and visit the facility only when they are in need of assistance (virtual business incubation). For a monthly payment ($300), start-ups are given access to all the facilities, and office equipment,

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

and can take part in networking events, seminars, and workshop sessions. To be eligible for using all the events organised by the incubator, virtual incubation programme participants make an annual payment ($600). All participants are assigned a mentor (a business strategist), who is to provide them with the necessary assistance throughout the programme. Mentors not only help to discover opportunities to be seized (incubator resources, partner networks), but also oversee the project work on a weekly basis. The first step is to develop a business concept, together with a corresponding action plan. These are then assessed and challenged by a Creative HQ panel. A positive evaluation is necessary to qualify for the next round. Creative HQ attaches a lot of weight to the evaluation of the potential business ideas. Only ideas that are considered to be well-prepared and viable are given the opportunity to receive the comprehensive assistance. For instance, last year, only 9 out of 142 ideas made it to the stage where they were forged into businesses. The start-up session is a five-week-long programme for people who have a business idea. It helps to challenge, develop and benchmark the initial ideas. The programme involves weekly practical workshops and one-on-one expert sessions. Meetings provide the participants with an opportunity to discuss their ideas, share their experiences, and draw on the expertise of experienced business strategists. They will also learn the basic mechanisms for laying the foundations for business, developing its marketing strategy and tapping into investors pockets. What is of interest, Creative HQ takes 5% of the shares in all successful undertakings. Therefore, it comes as no surprise that standards it follows resemble the approach of venture capital investors. The Creative HQ Team strives to minimise investment risk by a painstaking evaluation of business ideas. And since Creative HQ is a public-sector foundation, it is even more legitimate on the grounds of rational public spending.

Each quarter participants are reviewed on their progress. Creative HQ experts verify both whether the agreed activities and milestones are achieved and check the financial health of the emerging company. When necessary, they bring in the expertise to work out the steps required for tackling the encountered problems, while also indicating the relevant incubator resources that can be employed. Next to monitoring activity, the Creative HQ expert team gets together to benchmark the performance of all businesses. Every two months, a CEO Forum is held where all of the Creative HQ start-ups gather to share their experience. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

The incubator cooperates with the community of investors and business angels, and lends a hand in preparing business presentations to source funding. Creative HQ is also in close contact with partners dealing in tax and legal consulting, communication-strategy design, branding, PR, and website architecture. Tapped into an external partner and expert network, Creative HQ convenes many events for artists, novice entrepreneurs and existing companies, with an urge to grow. This involves, i.a., alignment with an angel investor network (one-on-one sessions with the authors of business ideas and investors), involving successful entrepreneurs who wish to share their experience with others, information meetings on the available forms of assistance, expert workshops on going global, marketing, and new technologies, to name but a few. In addition, each week Creative industries in Wellington (NZ)

Start-up Head2Head is held, where

The capital of New Zealand has based its brand on the strength of the

incubator start-ups get to talk their creative sector. It is an area where film, music, fashion and visual arts business idea out and pick other entrepreneurs' brains. From the moment it was established, over 80 businesses have left Creative HQ and survived the critical period of the first 2 years. They operate, i.a., in web and mobile app design, apparel

flourish. The city has put emphasis of the role played by the creative industries in its 2006-2016 Economic Development Strategy, which reflects the vision of Creative Wellington - Innovation Capital. The City authorities channel their efforts into supporting this sector by making annual awards for artists and businessmen who contribute to promoting Wellington and New Zealand through culture. A local financing programme has also been launched for grassroots initiatives, blending culture, creative endeavours and social integration, pursued by local communities (Creative Communities). The sector is also backed up by the local university (Wellington Institute of Technology), which has established a new field of study in creative technologies.

and jewellery design, 2D animation, graphical design, and book editorial and publishing.

iCreative

I-Creative is an international internship programme for graduates of creative specialities from Flanders, which paves the way for employment in European companies to gain valuable work experience. It is implemented as a grant project under the Leonardo Da Vinci EU Programme, which ensures the necessary financing. The support involves the organisation of internships in innovation-driven businesses (industrial, design, advertising agencies, architectural firms) and other cultural establishments (e.g. theatres, museums, art galleries), where participants are involved in the process of

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

designing or developing existing products. The internship can last up to 6 months. The arranged services include administrative considerations, contact assistance, pre-internship training, and scholarships to cover travel and accommodation costs, whose amount is determined by the internship period and destination. The weekly allowance ranges between €209 and €229. Host companies are required to have their focus channelled into creative projects, and show experience or interest in design. They are responsible for providing trainees with a mentor for supervision, and to predetermine their scope of responsibilities (e.g. select a target project for each trainee). Host companies can also offer remuneration, irrespective of the support a given trainee receives under the Programme. Available internship destinations include Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Greece, Spain, the Netherlands, Ireland, Iceland, Lichtenstein, Lithuania, Luxemburg, Latvia, Malta, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Switzerland, Sweden, Turkey, the UK, and Italy. Internships took place between August 2012 and May 2012 (second edition). Another round is scheduled for 2014. The Programme is targetted at graduates of creative specialities from Flanders who have no more than two years’ professional experience. Applicants should prove their BA or MA/MSc qualifications in •

architecture,

•

the audiovisual industry,

•

the visual arts,

•

communications/PR,

•

planning,

•

publishing,

•

games,

•

fashion,

•

the music industry,

•

the new media, or

Flanders DC Flanders DC is an organisation committed to supporting creative projects. It achieves this end by engaging in research on creativity, innovativeness, entrepreneurship and creative industries, which form the basis for introducing support instruments and other initiatives of various kinds. Flanders DC provides conference and co-working space, as well as meeting rooms; it delivers free on-line services, such as creativity testing; it maintains a database to present current job offers in the creative sector; it convenes regular workshop sessions for artists who plan on engaging in business activities. Apart from its I-Creative internship programme, the Plato Creative X-Change Programme, addressed to already-existing creative businesses, is also worthy of note. Within its framework renowned creative undertakings with wellestablished market positions provide assistance to other businesses that are seeking growth opportunities.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

â&#x20AC;˘

the performance arts.

Applicants interested in participating in the internship programme should first contact their target companies/organisations and receive preliminary approval. At this stage, it is recommended that they hand in their CV, covering letter and portfolio, so that a given business can assess their skills against the potential position. Applicants can fall back on the Programme administrator or its partners in establishing contact. The Programme administrator can also provide the addresses of websites with regular announcements of internship calls for applications. In case of difficulties in finding a suitable vacancy, host companies from previous years are contacted. The application, which is the first stage on the way to being admitted onto the project, should indicate preferred businesses. Applicants should list at least three companies/organisations they consider most attractive. Ideally, they should already at this stage deliver letters of intent signed by the host company, although it is not obligatory and can take place later. Such a letter of intent should provide a general profile of the company, indicate the recipient department and give other useful information, such as the traineeâ&#x20AC;&#x2122;s scope of responsibilities, description of the target project, etc. The application should also be appended with the applicant's CV and covering letter. The next stage involves an interview, which helps to get to know each applicant and his/her motivation.

may

prove

useful

have

some

knowledge

the

selected

companies/organisations. Any letters of intent from the target company will work in favour of a given applicant, as they confirm that internship vacancies are available. If an application is accepted, a month before the first day at work a given applicant is required to submit three documents to the Programme administrator, namely information notes on the host company/organisation, the letter of intent (prepared in accordance with specific requirements, and in particular presenting the internship offer), and an agreement concluded between the applicant, the host company, and the Programme administrator (Flanders DC). Prior to the call for applicants, Flanders DC has organised meetings for potentially-interested parties to present the initiative and explain the prerequisites for qualifying for participation and support.

Innovation â&#x20AC;&#x201C; inter-sector contacts Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Beraterpool Dialogfรถrderung

This is a project carried out in 2008 by WFB, a regional development agency in Bremen. The initiative was designed to encourage closer dialogue and cooperation between the so-called traditional and creative industries in Bremen. Its objective was to establish new and develop existing business structures and partnerships, which allow the generating of innovative solutions for local small and medium-sized enterprises. The initiators of the undertaking noticed that many businesses in traditional industries, such as industrial processing, commerce or logistics, were often unaware of the potential benefits they could unlock through cooperation with the creative industry. Such a state of affairs could result in missed opportunities for developing fresh

WFB Economic Development

business ideas. Companies operating within a

WFB is a company founded in the Free Hanseatic City of Bremen to pursue projects connected with economic advancement and achieving the true economic potential of the State. As a regional development agency, WFB engages in multiple actions to support entrepreneurship, such as micro-loans to start businesses, funds for innovative projects related to the implementation of new technologies, and consulting services for businessmen who are seeking partners, external financing or real estate. In addition, it provides assistance to foreign investors, e.g. by helping to find a desirable location or satisfy all the formal requirements necessary to launch a business in Bremen.

trusted and perpetuated framework risk the loss of their competitive position if their rival companies are quick enough in adjusting to market

fluctuations

and

introducing

innovative solutions to addressing customer needs. Dynamic markets call for instant reaction and the ability to adapt to the processes under way, but also to continuously improve products and services. Considering the aspect of building a competitive edge, it is also

essential to reach the customer through a coherent and effective communication policy and marketing instruments.

Beraterpool Dialogfรถrderung was developed to increase awareness, on the one hand, and to provide an incentive to businesses, which would perhaps fail to seek cooperation with the creative industry on their own, on the other. To attain this end, small cooperation projects between creative businesses and traditional small and medium-sized enterprises were offered financial support. Under a joint initiative, a team of experts was formed, comprising creative-sector professionals, such as consulting companies with expertise in industrial design, product development and marketing. Creative specialists were entrusted with the task of determining the fundamental issues Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

for a given undertaking and put forward plausible solutions to boost its potential. Therefore, they acted as consultants for enterprises interested in improving their performance based on innovative communication, marketing, and design

Creative industries in Bremen (DE)

solutions. For such guidance to work, each Bremen is the capital city of the smallest of the German States, the Free expert (consultant) had to satisfy the Hanseatic City of Bremen. The State’s economic-development strategy following conditions

•

have at least five years’ experience in delivering services to companies,

•

have expertise and know-how in marketing, innovation

to a large extent draws on the creative industries. In 2011 a multidepartment creative-industry team was established to develop a draft development strategy for cultural and creative establishments in the 2011-2015 perspective. Both the city and the whole State will contribute to building a brand of a welcoming creative destination. It is noteworthy that recently the city has pulled through quite a number of initiatives targetted at stimulating creative industries to grow, i.a. by making dilapidated and derelict buildings accessible from time to time to undertakings drawing on art and social integration (ZZZ Bremen initiative), launching a business incubator at the Academy of Fine Arts, and arranging meetings, known as Klub Dialog, to facilitate networking between artists.

implementation, or process analysis, and •

exhibit an interdisciplinary approach to problem-solving.

The project was open to businesses operating in any "traditional" industry. Anyone interested in receiving support had to complete a form (application), which included key information on the company and its current condition. Subsequently, applications were assessed by a team of creative-sector experts, whose task was to analyse the current standing of the company and to recommend a specific course of action to support it to achieve further growth. Consultations covered •

an analysis of the current portfolio,

•

an evaluation of market orientation and outlets,

•

a process analysis and action plan design,

•

the monitoring of the modification process.

For their contribution, creative-industry experts received €800 a day. Consultations could last up to five days. As a pilot project implemented in 2008, three business representatives (a creative agency, an interdisciplinary design institute, and a communications-design specialist) were included in the group of experts. In total, seven projects were pulled off to improve the performance of

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

companies which benefited from the consulting services. The projects included the introduction of new packaging design for a fish-processing company, a new marketing strategy for a coffee producer, and a communications strategy for a drinks vendor. Other beneficiaries include a software house, a construction company and a design office. The project has been continued as “MSP Offensive” (Mittelstandsoffensive). Based on previous findings, WFB has decided to extend the range of available services. Currently, businesses can take advantage of expertise in both the creative and ICT sectors. Therefore, the focus is on companies that wish to gain a competitive edge by partnering with creative businesses or introducing new IT systems. As far as creative experts’ support is concerned, it can involve, as it has before, 5 days of consultations, while guidance on Information and Communication Technologies allows 3 days. The team of experts is currently composed of 17 companies, which specialise in business-policy development, marketing, internet and mobile-tool design, computer-mediated communication (CMC), copyrights and industrial-design rights. The experience of WFB shows that in the immediate future it will be necessary to redefine the principles which underlie the Beraterpool Dialogförderung initiative. Above all, it has proven rather challenging to find relevant professionals in the creative sector which have broad expertise in business management and change management, that would enable an accurate assessment and allow them to put forward solutions aligned with their partners in the “traditional” sector. The next edition of the project will perhaps involve the assistance of specialists with the relevant know-how. In addition, more financial resources will need to be mobilised per consulting package. The existing framework of five consulting days proved insufficient in many cases, since the development and introduction of new design or marketing strategy requires significantly more time. Nevertheless, the desire for furthering cooperation between the creative industries and their more “traditional” counterparts is strong, so WFB intends to continue advancements in this field. The latest initiative that sparks interest is a newly-launched internship programme for graduates of creative studies on higher-education institutions, the Brennerei Next Generation Lab (www.brennerei-lab.de).

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Business incubation (start-up), supply chain

Culturinvest

CulturInvest is an investment fund to leverage support for cultural enterprises and undertakings. It was launched in 2006 on the initiative of the authorities of Flanders, as a response to the lack of private investment in the sector. The fund is to open up new opportunities for the creative industry via cultural projects and creative

products/services.

Support

available for all activities within the value chain

(e.g.

product/service

PMV Fund management has been entrusted to an independent investment firm, Participatie Maatschappij Vlaanderen (PMV). One of the reasons behind this decision was to put emphasis on the repayable nature of the instrument and its distinctiveness compared with other tools available in the Flanders Region to support the cultural and creative sectors. PMV focusses on local investments in Flanders, and in particular on businesses operating in renewable energy, biotechnology, sustainable technologies, natural sciences, and major infrastructural projects. The company follows strictly financial criteria, but it also takes the social and economic consequences of its target investments into consideration. When it comes to the CultuurInvest Fund, PMV not only provides financial support, but also assumes the role of partner to the candidate creative business.

design,

production or distribution). It is important to note that the instrument is repayable, as the assistance involves investment in the project, not a grant. Therefore, the fund expects to recoup the investment and benefit from a specific-rate return, which is absent in non-repayable programmes. The purpose of such a mechanism is to ensure sustainability. The resources available under CultuurInvest amount to € 21 m. The Fund has already invested € 9.2m, with € 6.6m in loans and the remaining € 2.6m as capital. However, the overall value of the investments made is € 18.6. This is in line with the Fund’s requirements, that for a capital increase, the business, or another entity, contribute financially to a given undertaking, at least as generously as the Fund. Support can take the following forms •

subordinated loan (short- and long-term),

•

recapitalisation,

•

combination of the above.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

When it comes to loans, it can be one-off assistance or a series of tranches spread over a longer time. The fund does not require personal collateral for a loan to be granted, which would be necessary for a bank loan. Interest rates for loans granted by CulturInvest correspond to the EU interest rates for Belgium, provided that the minimum rate is 4% plus risk premium. Interest rates are revised on an annual basis based on EU metrics, whereas the updated interest rate cannot be lower than the previous one plus 2%. Recapitalisation, on the other hand, is available only through a capital increase. Businesses are required to put their own or another entity’s (e.g. a bank’s) funds into the project, in the amount corresponding to the Fund’s contribution. The cap for CultuurInvest contribution per each 6-months’ period, is € 500 thousand, and the investment ceiling for a single company is € 1 m. The initial focus is on micro businesses and SMEs, which operate in the cultural or creative industries, such as •

computer games,

•

the new media,

•

the audio-visual arts,

•

fine arts,

•

the music and concert industries,

•

design, including fashion design and graphical design,

•

fashion,

•

publishing,

•

the performance arts,

•

distribution in visual arts,

•

communications and marketing,

•

architecture, and

•

cultural heritage.

Businesses seeking support are required to have the form of a company or an NGO, and to be based in Flanders or in the Capital of Belgium. Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

The main objective of the Fund is to deliver support to creative industries. Moreover, the Fund invests in undertakings designed to support artists and artistic projects. These are, for instance, companies which provide legal aid or business assistance for artists, or help in the distribution of artistic products. Investments of this kind are backed up, since they facilitate the process of marketing artistic output and delivering it to the target audience in the most effective manner possible. The nature of this instrument has a material impact on the support-qualification mechanism. The evaluation is to the largest extent determined by the contents of a business plan and the qualifications of its authors. The cultural value of a given undertaking is also of some importance, although not crucial. Selection is preceded by the evaluation of applications and a discussion to talk over the business plans with the entrepreneurs. The procedure is not predetermined in terms of time and can take as long as might prove necessary. The responsibility for the selection lies with the Fund’s management, while the decision on whether to give the project the green light is at the sole discretion of the Fund’s Investment Committee. The Fund also comprises the Strategic Committee responsible for controlling the Fund’s objectives, activity and investment decisions. The investment procedure involves 1. an application form, 2. an orientation meeting, 3. extensive investment analysis, 4. an initial proposal, and 5. the decision of the Fund’s Investment Committee. The procedure starts with submitting an application form. Generally, this takes place by electronic means via a dedicated website and is followed by delivering a signed form in print. The form gives business data on the company, the relevant industry, the project in question and the financial resources needed. This information is needed to introduce the undertaking to the Fund’s management.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

The next stage involves an orientation

The creative sector in Flanders The creative sector plays an important role in Flanders. Research carried out in 2011 (Guiette A., Jacobs S., Schramme A., Vandenbempt K., Creative Industries in Flanders. Mapping and economic analysis – a summary, Flanders DC, 2011) showed that the sector’s proportion of the Region’s GDP is 3%, which corresponds to € 7 bn. The industry employs 120 thousand people, or 4.3% of the professionally active workforce in the Region, while 13.5% of self-employed individuals report the creative sector as their core business field. Twelve areas have been established within the sector, including fashion, the audiovisual arts, the performance arts, games, the music industry, design, and architecture. Being aware of the industry’s importance to the Region, the authorities are committed to supporting and stimulating it with a wide array of instruments. Flanders DC is of particular importance in this field.

meeting between the representatives of the Fund and the business, where both parties talk over each other’s expectations and requirements. On the one hand, an entrepreneur

can

determine

whether

he/she finds acceptable the Funds financing terms, such as the expected investment return rate. And on the other, the Fund carries out an evaluation of the candidate’s qualifications and the project against their potential for achieving success on the market. The meeting is to help the Fund

arrive at the decision on whether to carry on or pull out of the project. The most common reasons for the Fund’s withdrawal at this stage are the project’s insufficient elaboration or poor quality, which cannot promise a successful outcome. In the event of a positive assessment from both parties, an in-depth analysis is performed to deliver the final business plan. At this stage, profitability is essential. The assessment is based on a scheme developed by the Fund to investigate the building blocks of the potential business, which are considered paramount for success in the cultural or creative sectors, or, in other words, the market potential of the target product and business positioning (in terms of its quality, price, geographical reach, etc.). The business plan is there to put forward a financial plan, made up of two major components – (1) a rough cash-flow plan for the first two years, and (2) a long-term plan (3-5 years’ perspective), to facilitate the evaluation of growth and profitability over time. In the event of there being problems with delivering the financial plan, the Fund provides assistance in the form of a relevant template. Information contained in the plan serves as a basis for discussing the financing aspect, i.e. the need for financial support, as well as its amount and mechanism, so accuracy in drawing up the plan is emphasised. The next element to undergo review are the authors of the project. The authors are assessed against their potential to pull the business plan through. The scrutiny focusses on aspects such as the authors’ previously-implemented projects and qualifications. However, neither shortcomings in the business plan nor insufficient qualifications will necessarily blight the

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

support, as long as a given business exhibits the necessary market potential, and the authors are ready to take their management skills to the next level. Finally, it is noteworthy that the in-depth analysis involves close cooperation between the company and the Fund, which also engages other partners, such as experts and co-funders. Moreover, the Fund reserves the right to delegate assessment at this stage to external specialists. If the analysis gives the project the go-ahead, particularly in respect of the business plan and its authors, as well as the financing needs and mechanisms, a preliminary contract is drawn up between the business and the Fund. In cases where the support is limited to a loan, the contract specifies conditions such as the amount of the loan, the crediting period, the return rate, repayment conditions, and possible modifications to the loan. If, however, capital increase comes into play, an additional valuation of the business is carried out to determine the value of the new shares, and the contract provides for such issues as dividend policy, the Fundâ&#x20AC;&#x2122;s participation in business management, the decision-making principles, and share purchase/sales. When the undertaking wins approval, the preliminary contract is used as the basis for the final agreement between the parties. The preliminary co-financing contract also introduces the project to the Investment Committee, which is the body responsible for authorising the project support. On top of that, the Committee has the authority to add supplementary provisions to the contract. After the successful application and authorsâ&#x20AC;&#x2122; approval for financing conditions, the Fund initiates further procedures (legal, administrative, financial) to launch the investment. Subsequently, the business continues to receive support in order to maximise chances for a successful outcome. Before it was put to operation, the blueprint for the Fund was presented to the European Commission to ensure that the prospective support does not hijack fair competition and does not disturb the market. The programme was given the green light and its activities are endorsed by the EC.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

5. The roadmap

The results of research carried out on the local, European and global levels have been put together in the form of a roadmap. The diagram illustrates the identified instruments available for furthering entrepreneurship and clustering in the creative industries. Its starting point is the procedure for the development of creative clusters, in a fairly broad sense, since, for a cluster to be established, it is necessary that individual artists engage in commercial activity. Development stages have been assigned processes which correspond to research areas of interest identified under the project. In consideration of the above, the process sprouts with the artist, who embarks on bringing his/her activities to the market, and whose undertaking enters the start-up stage. The support available at this stage focusses on incubation and business promotion, or, to put it differently, assistance in forging the artist’s idea into a business. The identified instruments include space, or a business “playground”, for artists and entrepreneurs, training to deliver business competence, as well as funds, and individual consulting assistance throughout the business set-up. At this stage, it is also vital to advance the qualifications of creative professionals with a view to aligning them to market requirements, so that artists are well equipped to operate in the commercial environment (deficiencies in this area are frequently put forward as the weak point of creative and cultural professionals). The start-up phase is followed by a continued growth. In the case of creative undertakings, it is fundamental to seek cooperation with other entities, and business partnership has time and time again proven fundamental to a successful outcome. Contacts between different sectors, either with other creative or non-creative operators, are of special value. Such relationships give birth to innovation, both to the benefit of creative and so-called “traditional” industries, hence innovation encompasses companies at various stages of development, from independent businesses to partnerships. At this point, support comes as a stimulus for collaboration between and the promotion of cultural and creative industries. The utilised tools include on-line platforms to facilitate contact opportunities for potential partners, networking events, a shared space (incubator) conducive to new business relationships, internships and staff-exchange programmes, grants for joint projects to stimulate teamwork, and some Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

explicitly promotion-oriented measures, such as fairs and festivals. Subsequent incentives to progress cooperation encourage independent businesses to engage in business partnerships in relation to other operators within the value chain, which are then cemented to establish a cluster. Intensified cooperation, ending up in a cluster, forms the third process, known as clustering. At this stage, the support continues to foster and strengthen cooperation and promotion, which can take the form of creative districts, joint sessions to address business problems, and industry-specific associations, as well as campaigns, fairs and festivals. Some direct steps are also taken to establish clusters. To this end, an institution is appointed as cluster coordinator to work to invite companies to entering the cluster, but also stimulate and manage its development.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

6. Conclusions and recommendations

The produced output allowed the authors of this report to suggest instruments which, to their minds, could help streamline the processes defined in the individual mini studies. It also gave rise to general postulates, which, so the authors believe, will serve as efficient stimuli for the creative industry in Warsaw. The activities should address the following aspects 1. Sector evaluation and growth monitoring as actions to develop tools for a live preview over sector advancements, from organisation registration to supervision over growth conditions and needs, carried out on an ongoing basis. 2. Delivering a suitable infrastructure to facilitate business incubation and build cooperation between the creative and traditional sectors. 3. Furthering the grant system and financial engineering instruments to provide financial support necessary to satisfy the needs of such companies. 4. Educational projects channelled to stimulate entrepreneurship in this sector and to deliver the necessary professionals. 5. Marketing operations to inspire collaboration, establish new organisations in this sector, and promote it outside Warsaw. Please consult the table below for measures put forward to consolidate the creative industry in Warsaw. Wherever possible, the initiatives that have already been planted were indicated alongside the institutions and the projects identified in Europe which could serve as a potential source of inspiration for the development of new undertakings in a given area.

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Global initiatives

Creative incubation and supply chain

Tools

Creative innovation

Current state of affairs

Creative entrepreneurship and cooperation

SWOT

Recommendation

Recommendation target group

The development of evaluation instruments for the creative industry A

S – identify growth patterns for the

References:

Estimating the number and size of

CIDA

comprehensive

sector and the number of operators

• Mirosław Grochowski –

creative businesses in individual

Creative

analysis of the

W – costs and time

Sektor Kreatywny w

sectors

Industries

all levels,

current

O – opportunity to specify the

Warszawie potencjał i

Estimating the employment,

Finland (FI)

depending on

condition of the

desirable growth orientation

Warunki Rozwoju 2010

generated value and pace of growth

creative sector

(concentration on selected industries)

• Znaczenie Gospodarcze

T – considerable sector volatility, data

Sektora Kultury – IBS

Establishing the creative sector

fluctuation, the need for updating, the

2010

roadmap by identifying and

issue of the assessment’s representative value

• Polityka Wspierania

(UK),

Evaluation can take place on

information

in creative businesses

demand

developing the connections pattern

Kreatywności jako

to explore the processes behind

czynnika stymulującego

network and cluster formation

rozwój… - Fuhrman/ Grochowski/

Identifying directions for growth in

Mańkowska/ Zegar 2010

innovative businesses

The development of infrastructure oriented to the creative sector Creating incentives to

S – real and noticeable support for companies

Programmes designed by Employment Agencies to

The simplification of formal requirements, the introduction of tax

National authorities

Raport początkowy: Badanie sektora kreatywnego na potrzeby projektu European Creative Cluster Lab (ECCL)

establish

W – implementation problems

finance start-ups, under

reliefs, limited labour cost tax, etc. –

independent

(Government/ parliament decision)

the Labour Fund and

especially for the first commercial

businesses

O – boosting the sector’s

Human Capital

undertakings of individuals below

competitiveness

Operational Programme

the age of 30

T – none

funds.

Incentives for

S – real and noticeable support for

Business incubators and

Tax reliefs, shared project

creative

companies

their statutory activities.

settlement, grants

clusters

W – problems with assessing the

(Ministry of the Economy)

Different Governmental levels, depending on

efficiency of such measures O – increasing opportunities for

policy

growth/starting a business activity

objectives and

T – managing the sector’s

implemented

development at the expense of their

instruments

industries (complaints against discrimination) Increasing the

S – important element to protect

confidence of

intellectual rights

business

W – implementation problems

partners,

(Governmental/Parliamentary

protecting

decision)

innovation and

O – stimulus for innovation growth

ground-

and fresh products

breaking

T – negligible, possible difficulties in

products

transfer between the companies

Patent Office operations

Improved regulations, especially in

National

terms of copyrights

authorities

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

Supporting the

S – opportunities for furthering

Cluster clubs

Incentives, assistance and consulting

KIK (LT),

National

existing

cooperation between businesses

Warsaw and Mazowsze

services to create majors,

Future in

authorities

networks/clust

W – difficulties in coordination and

Region Employer

specialisations and courses on

Textiles (RO),

ers/association

output measurement

Association

various levels of education,

Tartu Centre

O – opportunities for cluster growth,

connected with creative sectors

for creative

commercial impact maximisation,

Industries

All levels,

synergy effects

The organisation and promotion of

(EE)

depending on

T – lack of coordination, difficulties in

cultural events at the local, national

current

rising to the challenge of large projects

and supra-national levels

situation

Ensuring funds

S – ensuring key components for

Business Environment

Establishing a sub-fund to advance

Departure

for the creative

sector growth and raising the

Institution package

the creative industry and/or bidding

(AT),

sector

awareness of the financial

institution to provide funds

Cultuurinvest

consequences of creative projects

(BE),

National

W – difficult to source, especially

Establishing a sub-fund for the R&D

Startwest

during the slowdown

in innovative projects as an incentive

Investor (FR),

O – growth opportunities for the most

for businesses, which allocate their

Incredibol!

promising projects, opportunities to

resources to R&D, increasing the

(IT), H-Farm

establish collaboration between

amount of funds earmarked by the

(IT)

various industries

city for R&D

authorities or local Governments

T – lack of interest, artificial growth (inflating the bubble in the creative

Establishing an investment fund,

sector)

financed e.g. under the JEREMIE or JESSICA EC initiatives

Establishing

S – building up a community engaged

Databases available in the

Establishing an Internet platform,

KIK

(LV),

National

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

cooperation

in the creative sector

Information Processing

where anyone can share their most

Tartu Centre

and creating a

W – difficulties in prospective output

Centre

innovative business ideas. No formal

for Creative

platform with

measurement

requirements for authors can result

Industries

higher-

O – opportunities for interaction

in a large number of submissions

(EE), Viljandi

education

between different circles, using the

institutions to

potential of young people who enter

satisfy the business need

creatives.waw.pl

authorities

Creative innovation website

Opportunities for internships and

Incubators

the job market

finding jobs for graduates

Foundation

T – limited funds, low interest

Access to young professionals

(EE)

District

for

Employment

professionals,

Organising a nationwide competition

especially in

in cooperation with the business

artistic or

environment (in the style of business

technical

case competitions organised by

majors

leading universities)

Agencies

National authorities Administrative support for the creative sector Increasing the

S – low cost

availability of

databases and

researchers

scientific

would have to authorise the use of

Virtual Entrepreneurship

Dortmund.Kr

articles on the

their works

Builder, the City of

eativ

creative sector

O – the popularisation of the subject,

Warsaw

Flanders DC

–

requires and

cooperation

with

consultants

who

access to a wealth of data, case

Information Processing

Establishing

Centre

innovation, functionalities

open-content, and

open-

open-journal

Creative

Such a

Industries

repository can

Finland (FI),

be initiated at

(DE),

any level, as necessary

(BE) Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

studies, etc. T – the danger of low interest on the part of the target audience

Increasing the

S – channelling public support for the

The activity of institutions providing support for the creative

Departure

availability of

industries which look promising for the

industry

(AT),

financial

Polish economy

resources for

•

District Employment Agencies – assistance under

Creative HQ

W – public resources need to support

statutory services (e.g. job placement as well as training,

(NZ)

the creative

other industries in the Polish economy

internships, professional qualifications,

sector under

as well

standard/supplementary equipment sponsoring, and

public funds via

O – EU funds can somehow extend the

others)

specific

public-funding package

institutions

T – these funds hinge on the economic

responsible for

situation of Poland and the EU

•

National authorities, regional authorities, and businessrelated institutions

Higher education and R&D – support in the form of

internship openings and innovation transfer •

the

Self-regulatory organisation (SRO) – support in the form of seminar meetings and lobbying

redistribution

•

Loan funds – loan services subsidised from EU funds

of funds

•

Business incubators – consulting and training under statutory services

Facilitating

S – low cost, relatively straightforward

Creatives.waw.pl

Establishing an Internet platform

Interactive

cooperation

implementation

Tayside (UK),

between start-

W – low trust level, difficulties in

Creative

ups and well-

prospective output measurement

Factory

established

O – establishing a platform for

(NL), PIVOT

Local authorities and

local businessrelated institutions

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

companies,

cooperation between the creative

Dublin (IE)

(close location

which are

sector and the traditional business

of partners is

seeking to

T – the danger of poor interest on the

essential for

expand their

part of the target audience, the risk of

this type of

portfolio

poor profitability of business ideas

initiatives)

Assuming

S – efficient measures for the

Targowa 56

Sector expert and leader lectures

Dortmund.Kr

patronage or

promotion of the creative sector and

Creativity Centre

Opportunity for exhibiting the works

eativ (DE),

providing a

its integration with other branches of

Smolna 6

of artists, especially during seminar

Creative HQ

meeting place,

the economy

Entrepreneurship Centre

sessions,

(NZ),

organisations/

W – requires work and financial input,

Consulting on taking advantage of EU

Interactive

foundations/an

and complex coordination

funds

Tayside (UK),

incubator with

O – the opportunity to create a

their own

community and meeting place, to

Consulting on seeking financial

(BE), Creative

brand and logo,

promote the creative sector in the

support from private investors

Factory (NL),

which make

media, to win important partners

Consulting on the suitability of

Technopark

reference to

(stock exchange), opportunities for

individual business models for the

Obidos (PT),

Business-

the Warsaw

integrating various environments and

creative industry

LUKE (FI), H-

area

delivering expertise to further the

Introducing the business-related

Farm (IT),

sector's development

institutions' package to the

Creative

T – the danger of poor interest on the

incubator, particularly when it comes

Adrejsala

part of the target audience

to entities authorised under the

(LV)

Businessrelated institutions, Local Government

Flanders DC

institutions

National System of Services for SME’s within the Polish Agency for Enterprise Development (KSU PARP) Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

network and private institutions (particularly banks, insurance companies, leasing companies, and venture-capital funds

Consulting and support for

Business-

businesses operating in the creative

and traditional sectors and/or

institutions

higher-education institutions Cooperation with the Warsaw Stock Exchange (GPW)/New Connect to develop an index of creative businesses Establishing a ranking of creative companies/ Competition for the Creative Company of the Year to promote the sector Supporting

S – real place for meetings,

Targowa 56

Stimulating involvement

Dortmund.Kr

networking

integration, sharing ideas, building a

Creativity Centre

in/cooperation with the creative

eativ (DE),

authorities,

projects and

community and atmosphere of

Smolna 6

sector among traditional businesses,

Interactive

business-

building

creativity and innovation

Entrepreneurship Centre

as an element of corporate social

Tayside (UK),

business

W – requires work and financial input,

responsibility (as part of CSR reports,

Creative

relationships

and complex coordination

Meetings under the

instituting the corporate patronage

Factory (NL),

between

O – an opportunity to use the city's

Creative Mikser

of culture)

LUKE (FI),

National

related institutions with regional or national reach

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

different

potential (HR, artists, business,

sectors

finances) in the fashion following

Websites to help find

Establishing 3 social and networking

Centre (UK),

foreign solutions

employment

Digital Media

centres in various locations within

CliNET (UK),

T – the risk of a missed opportunity,

the city, with free Wi-Fi access, as a

Creative

project drift, abuse of infrastructure,

meeting place for creative

Dublin (IE),

culture commercialisation

professionals and businesspersons,

Creative

artists, students, financial-service

Incubator in

supplemented

operators, etc. The centres can seek

Tallinn (EE)

by partners

Local Government

partnership with coffeehouse chains (e.g. Coffee Heaven or Starbucks). The centres would also provide exhibition space for artists. Establishing cooperation with a personal-consulting agency/website, which will deliver a database of job seekers, mainly in the creative sector Promoting the

S – efficient measures for the

Winning media patronage - daily

Creative

creative sector

promotion of the creative sector and

newspapers, magazines (e.g. Forbes)

Industries

depending on

and

its integration with other branches of

and TV network (e.g. TVN, CNBC)

Finland (FI),

the initiatives

innovativeness

the economy

in the industry

All levels,

Future in

W – difficulties in gathering the

Textiles (RO),

necessary data, requires work and

Organising an annual competition for

Departure

financial input

the most innovative undertaking for

(AT), CIDA

O – an opportunity to boost the

companies operating in Warsaw

(UK), PIVOT

undertaken

Local

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

creative sector's recognisability

(award-winners enjoy tangible

Dublin (IE),

Government or

(media)

benefits such as free marketing

KIK (LV)

local business-

T – the danger of poor interest

campaigns on the city hall's website,

etc.)

institution

Compiling an annual ranking of innovative companies in the creative sector in the Warsaw District Creating

S – setting up a solid infrastructure for

Targowa 56

A location tailored to fit the

Creative HQ

conditions for

the development of innovativeness to

Creativity Centre

cooperation of a number of different

(NZ),

the

be used for many years

businesses, provided they belong to

Technopark

construction of

W – requires work and financial input,

or cooperate with the creative

Obidos (PT),

and coordination

sector. The development of

H-Farm (IT),

cluster/technol

O – an opportunity to use the city's

individual companies in the value

Digital Medi

ogy park

potential (HR, artists, business,

chain

Centre (UK),

finances)

Preferential conditions, e.g. rent,

Karostar

T – complaints against discrimination,

free Internet access

(DE),

the danger of abusing the

Westergasfa

infrastructure without producing any

briek (NL). LX

tangible effects

Factory (PT)

Businessrelated institution

Education oriented to the creative industry Promoting

S – opportunity to develop resourceful

Entrepreneurship lessons

Organising programmes and courses

Flanders DC

entrepreneursh

attitudes in the next generations

Capital City

to facilitate simulated business-

(BE), KIK (LV),

ip and active

W – long waiting period to see the

Entrepreneurship Forum

approach

outcome, difficulty in estimating the

Kozminski University (ALK)

management experience

Viljandi

Local Government

Creative Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

efficiency of such measures

- Entrepreneurship in the

Incubators

O – leveraging the potential to

Creative Industry

Foundation

produce social and economic growth

(EE)

T – difficulty in foreseeing the orientation of growth in the future Maximising

S – proactive approach, using the

Lessons such as

Organising workshops for children

KIK (LV),

Local

chances for

available resource base (infrastructure,

Maths for inquisitive

and young people, as well as for

Viljandi

Government or

talented and

teachers, artists)

minds

adults, to encourage creativity

Creative

national

highly-creative

W – long waiting period to see the

ECCL

Consulting and support for primary

Incubators

authorities

individuals to

outcome, difficulty in estimating the

Cross Innovation

schools, lower secondary schools,

Foundation

(nation-wide

grow

efficacy of such measures

and higher-education institutions,

(EE)

programme)

O – boosting creativity in prospective

which implement educational

employees, opportunities to redirect

projects designed to advance the

the country's economy

sector or the creative class

T – controlling the industry development, favouring the creative

Organising training for

industry over the others

entrepreneurs and business

Businessrelated

managers, as key professionals in the

institutions

development of an organisations, in a series of sessions presenting management techniques for higher innovativeness Delivering inspiration for

S – low cost, re-usability of the acquired materials

Materials published on creatives.waw/facebook

Sponsoring/co-funding a publication (available e.g. on the Internet) to

Local

Government

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

young people

W – the possibility of the materials

describe case studies of successful

and a

quickly becoming out of date

creative businesses

benchmark for

O – opportunities for the higher

subsequent

contribution of the creative sector to

projects

the GDP T – no effects, difficulties in measuring the outcomes to inputs ratio

Initial report: A study of the creative sector for the purposes of the European Creative Cluster Lab (ECCL) project

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